Motor finance provided through dealerships
accounted for the financing of 61.5% new car sales in January –
November 2011.
The figure, up by nearly a fifth on the same
period in 2010, aided rising sales of both new and used cars toward
the end of 2011, according to the Finance and Leasing Association
(FLA).
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New car sales were up 6% in November (2011,
compared to 2010) and 7% for the three months to November (compared
to the same period, 2010); while used car sales were up 4% for the
month and 5% for the three-month period.
The figures tally with
research in November last year by Alphera Financial Services
which estimated that dealers and dealerships were the primary
source of information for 61% of car-buyers.
With two thirds of those customers surveyed
saying they were more careful with their money than in 2010, but a
quarter coming to dealerships without a fixed budget, Alphera
emphasised the need for dealers to be both educated in the products
they offered and willing to help educate consumers.
A point with which Paul Harrison, head of
motor finance at the FLA, appeared to agree: “Our figures highlight
just how important finance sold in dealerships has become in
helping people to buy new and used cars. Showrooms are the first
choice for buyers because of the range and flexibility of the
products on offer.”
richard.brown@vrlfinancialnews.com
