Car finance plans continue to rise in August, FLA reveals

The number of new cars bought on finance rose by eight per cent in August, according to new figures.

Data from the Finance & Leasing Association (FLA) shows that the percentage of private new car sales bought at dealerships with the help of finance plans reached 78.9 per cent in the year to August 2015. Point-of-sale consumer used car finance also saw continued strong growth in August, up seven per cent by volume and 12 per cent by value.

Affordable finance plans are evidently proving popular with customers, helping them to pay for their cars in instalments rather than costly one-off sums. Car dealerships and garages, like most businesses, will also want to avoid large one-off payments, which is why business insurance - specifically motor trade insurance - is so important. This will protect the business and its assets so if something goes wrong, such as a fire or theft, the insurance company will cover the costs, helping the trader avoid the big one-off fees.

Geraldine Kilkelly, head of research and chief economist at the FLA, commented on the latest figures: "Both consumer new and used car finance markets reported relatively robust growth in August, ahead of the introduction of the new 65 registration plate in September. We expect this growth to continue in the final quarter of 2015."