Vehicle data provider Glass’s has suggested that new car sales will grow by ‘around 3%’ year-on-year in 2016, powered by motor finance offers.
Glass’s said the number and variety of finance packages available to private buyers would drive growth in both the new and used sectors.
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In particular, it noted innovation occurring in the used car sector, such as the use of PCP products to bring more customers into a market that is starting to see signs of oversupply.
Rupert Pontin, Glass’s head of valuations, said: "Finance has become the core of the car market in recent years and we are seeing manufacturers, finance providers and dealers all looking to use it as a tool to continue to drive forward sales in 2016.
"So, in the new car market, we will see more and more competitive additions to the PCP schemes available, alongside higher level of support, to ensure that stock keeps selling. This is a continuation of a policy that has proven successful since the worst days of the recession."
In the used car sector, Pontin said the customer was destined to be the big winners of 2016, with a wider range of cars to choose from combined with increasingly competitive finance options.
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By GlobalDataOverall, he said, the market might shift slightly, but the industry could expect 2016 to be a profitable year.
