Used car sales under Personal Contract Purchase (PCP) plans rose
17% in the year to the end of July, according to latest statistics
from the FLA, which this month praised dealers and lenders for
“innovation” in presentation of used car finance.
Though hire purchase still accounted for 65% of finance
purchases in the last twelve months, PCP now finances 20% of used
car finance deals, with personal loans from dealers making up the
remainder.
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In total, the used car finance market in July this year was also
4% up on July 2010, while the month also saw a 6% rise in new car
sales, and a 2% rise in the value of deals compared to July
2010.
The new car finance market continues to fluctuate, with sales in
the year to July 2011 down 5% compared to the previous 12 months.
However, the recent trend is one of recovery, with the three months
to July 2011 seeing sales rise by 1% compared to May-July 2010.
By contrast, the financing of private used car purchases was
shown to be positively buoyant: The value of advances and the
number of cars financed in the three months to July were both up 5%
on the same period in 2010, and both were up 5% in the twelve
months to July compared to the previous year.
richard.brown@vrlfinancialnews.com
