The Finance & Leasing Industry has
called on the government to help the motor finance industry prepare
for a brighter financial future, saying that “more financial
stimulus and a long-term plan from government are needed if lenders
are to meet demand when the economy recovers”.
It reported that new motor finance
business fell “significantly” in the first half of 2009 compared
with the same period in 2008, with the volumes of private new and
used cars bought using dealer finance down by 23 percent and 10
percent respectively.
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Geraldine Kilkelly, head of research
and chief economist at the FLA, said: “We have seen the smallest
drop in motor finance since September 2008, but motor finance
providers are still very concerned about the lack of well-priced
funding on the wholesale markets. While most lenders are able to
meet demand at the current reduced levels, if demand increases in
the second half of the year the availability of credit for car
buyers may become an issue.”
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By GlobalData
