Cash loans for new cars soar by £2 billion in 12 months
THE amount of loans given for new cars has soared by more than £2 billion in the past year, new figures show.
The Finance and Leasing Association (FLA) said the industry provided more than £9 billion of finance for consumers in the 12 months to November 2012.
This figure is a 34% rise and paid for more than 650,000 new cars over 2012.
The FLA's latest statistics also show that 70.8% of all private new cars sold over the previous 12 months were funded by showroom finance. Personal Contract Purchase (PCP) agreements now account for 63% of total new agreements by value, it said.
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Paul Harrison, Head of Motor Finance at the Finance and Leasing Association, said: "These figures show continued strong growth in the new car market as incentivised deals continue to make new car prices attractive for buyers. Those incentives are available across the full range of finance products including hire purchase, leasing and personal contract purchase.
"Motor finance companies have provided drivers with an extra £2 billion of finance in the last 12 months allowing thousands more people to drive away from the showroom in a new car."
Comments
by catdaddy1214
Wednesday, January 09 2013, 10:47PM
“@pogle63a: Depreciation is something every new car buyer has to deal with. I'd rather get a brand new car that I own from the first few miles and take care of it till the end. Very happy with my purchase and couldn't care less about it "losing value" since I'm not going to sell it anyway.
It's all about knowing what you can afford and thinking about what you're getting into prior to the purchase. Getting something flashy just 'cause you want to impress someone is simply stupid”
by Waltersmith
Wednesday, January 09 2013, 9:38PM
“I had a four door, it had no floorpan (rotted away), rear studded winter tyres permanently on - did me brilliantly in the 1982 winter, it had one of those pump action wind screen washers which froze up so we'd have to throw neats creen wash on to the screen - happy days!”
by MissAnthrope
Wednesday, January 09 2013, 9:36PM
“There are good deals out there for pink convertible Fiat 500s at the moment. They are comfortable, economical and best of all bright pink.”
by pogle63a
Wednesday, January 09 2013, 9:16PM
“@ Waltersmith Mk1 Escort 2 door I feel sick as a parrot when I see them for sale nowadays mine was excellent when I sold it back in the early 90`s look at the price of one now. Mine went like stink!”
by pogle63a
Wednesday, January 09 2013, 9:10PM
“Makes me laugh, new cars loose money faster than a luckless gambler in an online casino! I mean who would actually invest so much money in something that by the time you get half way to paying for it is worth next to nothing? Drive it from the showroon home and you loose a grand. Shall stick to my old sheds, cheap cheerful, not bothered really if it gets damaged and get a guaranteed £100 cash back when I finally scrap it.
New cars I really would not want one, let alone get in hock for one.”
by Waltersmith
Wednesday, January 09 2013, 7:20PM
“I miss my Ford escort Mark 1 - £75! and a dream”
by josdave
Wednesday, January 09 2013, 7:18PM
“Far too many people buy cars out of their financial bracket on the never never and then go whinging when they are in debt. Don't buy, with the possible exception of a mortgage, more than you can afford.”
by timplymouth
Wednesday, January 09 2013, 4:51PM
“You'll have noticed all the adverts for cars on the TV and Radio always say "Drive a new mini from XXX per month" or similar. They never talk about owning any more. These personal finance deals where you don't own anything. You're basically renting a car for 3 years. It's a complete waste of money, but they are status symbols these days.
Personally I drive a banger, but at least I own it.”