Latest statistics from the Finance and Leasing
Association show dealer finance penetration at 53% of the total
market in the 12 months to January, 0.9 percentage points higher
than in the 12 months to December 2010.
Altogether, £812m of car finance was sold to
consumers through dealerships during the month, compared to £699m
in January 2010.
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Year-on-year growth in the value of used car
finance sold during the month outpaced growth in new car finance,
at 17% to £475m compared to 15% to £337m – a clear indicator that
used car finance remains a growing priority for dealers.
Data for the three months leading to January
also supports this conclusion, showing new car finance down on the
period a year earlier, but used car finance significantly up.
In new car finance, the rate of increase in
value financed outpaced the rate of increase in the number of cars
financed at 15% compared to 6%, suggesting a larger average ticket
size and supporting the increased demand for prestige vehicle
finance reported by dealers.
In used cars, the volume of units financed
showed a larger increase than the total value financed at 20%
compared to 17%, meaning a smaller average ticket size than last
January.
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By GlobalDataThis may be because customers that would have
opted for cheap new cars on scrappage last year are now seeking
finance for used purchases, or because of increased stock and lower
prices in the used market due to the end of the scrappage
scheme.
Business customers showed a strong uptake on
new car finance compared to previous months, reflecting either an
increase in business confidence or a growing need to replace
vehicles.
