The finance extended per new car has increased marginally in July despite a drop in the overall value and number of cars financed compared to the previous month, according to figures from the Finance & Leasing Authority (FLA).
In July the number of cars financed fell to 62,688 compared to June’s 72,726, a fall of 16% on the month. The value of the finance extended however declined by 15% from £1.15 in June to £1bn in July.
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The figures match the strong rise in the sales of prestige cars in July compared to the year before. BMW saw an 18.65% rise in sales, Jaguar and Audi 11% and Maserati the Italian sports car maker, 705%.
By comparison mainstream car makers saw declines with Ford down 7.62% or modest increases with Vauxhall up 3.25%.
Continued rise
Year-on-year the finance extended continued to climb in July. The value of advances rose by 13% and the number of cars 6%. The 12 months to the end of July saw an increase in value of 21% and the number of cars by 14%.
The industry penetration rate for new cars remained stable at 75.3%.
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By GlobalDataFigures for used cars looked even more impressive as the finance houses continued their push into the largest of the car markets. The value of deals grew 20% compared to July 2013 to a total of £936m and the number of cars to 92,618, up 14% year-on-year.
A return of business confidence was reflected in the rise of finance in business car purchases. Over 45,973 new cars were financed in July up 29% on July 2013. This took the amount of business cars financed to 428,915 for the 12 months to the end of July.
