Large used car business and
willingness of lenders to participate through dealerships stems
decline.
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The UK motor
finance industry achieved a 5.1% 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.
German providers, for example, lent
24% less in 2010 than in 2006, while in Spain total advances fell
by 29.3%. Europe’s average annual lend fell 10.6% between 2006 and
2010, breaking down to a 12.6% fall in point of sale finance and an
8.1% fall in direct lending.
David Parry, consultant at
Finaccord, said that one of the UK market’s unique strengths was
the average number of finance partners used by dealers, and the
number of non-captive finance providers active in the market,
despite recessionary exits.
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By GlobalDataApart from Russia, which has seen a
very large number of funders spring up in recent years, the UK was
found to have more active players than any other European
market.
Another reason why the UK had not
seen the decline in finance evident elsewhere, he said, was the
country’s notably large used car business and the willingness of
lenders to participate in it through dealerships.
