Number of new and used cars bought on finance continues to rise

Consumer finance figures for both new and used cars buyers are continuing to rise, according to the Finance & Leasing Association (FLA).

The FLA revealed that there was a 14 per cent growth in new cars being bought on finance in October 2014 compared to the year before, while this figure jumped nine per cent among used car buyers. Furthermore, the percentage of new car sales financed through dealerships by FLA members reached a new record high of 75.9 per cent in the 12 months to October.

Finance plans have played a key part in boosting car sales in the UK over the past three years, but some have questioned if this is a sustainable way of supporting growth. For the car dealers, whether they are seeing their business wind up or down, they must keep a close eye on their motor trade insurance policy to ensure they still have the necessary level of cover for their needs.

The FLA’s Geraldine Kilkelly commented on the organisation’s latest findings: “The consumer new and used car finance markets have reported new business growth in each month so far in 2014.

“Both markets are heading for record years, with almost two million cars likely to be bought by consumers on finance provided through dealerships in 2014 as a whole.”

Last week the Society of Motor Manufacturers & Traders (SMMT) revealed that new car registration figures rose by eight per cent during November, marking the 33rd consecutive month of growth for the motor trade industry.