Confidence among car buyers is on the rise, which is leading to consumers increasing their monthly finance payments, new research has found.
The inaugural Paragon Car Finance ‘Headlight Survey’, questioned the UK’s largest motor finance brokers, and found that 60 per cent of brokers described car buyer confidence as either strong or very strong. This confidence among buyers is translating into optimism among the financiers, with 74 per cent saying they expect to finance more vehicles over the next three months and more than one quarter (26 per cent) expecting to finance about the same amount.
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.
Another key finding of the Paragon Car Finance survey was that motorists in the UK are replacing their car more frequently. Three times as many brokers reported that over the past 12 months they have seen the replacement cycle shorten (39 per cent) for their customers than those who said they have seen it lengthen (13 per cent).
Almost a quarter (23 per cent) of brokers also said that car buyers are increasingly willing to pay a little more each month when arranging finance for a car purchase.