The UK motor finance industry achieved a 5.1
percent greater annual lend in 2010 than in 2006, according to data
published by market research company Finaccord.
The report, Automotive Finance and Leasing for
Consumers in Europe, highlights the resilience of British motor
finance compared to the industries of other countries.
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German providers, for example, lent 24 percent
less in 2010 than in 2006, while in Spain total advances fell by
29.3 percent.
These figures include both direct lending
outside dealerships, as well as point-of-sale (POS) finance.
One reason why the UK has not seen the decline
evident elsewhere has been the country’s notably large used car
business and the willingness of lenders to participate in it
through dealerships.
Another factor has been the decline in the
average value of cars sold in markets such as Germany, meaning a
smaller advance per unit than in the UK.
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By GlobalDataOverall, the report estimates that Europe’s
average annual lend fell 10.6 percent between 2006 and 2010,
breaking down to a 12.6 percent fall in Pos finance and an 8.1
percent fall in direct lending.
For a full analysis of Finaccord’s report,
including detail on the changing relationship between UK dealers
and captive finance companies, see March’s edition of Motor
Finance.
