Dealer motor finance increases

22/11/11

By Nathan Walker

There has been a surge in people using dealer motor finance to buy new and used cars.

September saw an 11 per cent year on year increase in loans to buy new cars, as car dealerships made more than £1.1 billion available to new car buyers.

The finance market for used cars also grew, with more than 66,000 used cars being bought in September with the help of dealership finance worth £600 million

During September, dealer motor finance was used by 150,000 motorists. The system of finance enjoyed its largest market share for many years during the last 12 months, with 60 per cent of the market, according to the latest figures from the Finance and Leasing Association.

Paul Harrison, head of motor finance at the Finance & Leasing Association, said: "September is a hugely important month for the motor industry as it sees the release of the new number plates. Our figures make encouraging reading for dealers and finance providers in what are still tough trading conditions.

"Dealer finance has bucked the downwards trend of some other lending markets, in part because of the wide range of products available to consumers."