New car finance sales on the up

Date: 17/5/2012

There has been an increase in new car finance sales in the UK.

Figures from the Finance & Leasing Association show they grew 33 per cent by value and 22 per cent by volume in March 2012 compared with the same time the previous year.

Overall, finance sold in dealer showrooms has accounted for 65.9 per cent of all private new car sales over the past 12 months, compared with 56.6 per cent the previous year.

Head of Motor Finance at the Finance & Leasing Association Paul Harrison said the results are good news for the British motor industry.

"Encouragingly, used car finance has also performed well, with the number of financed cars sold up by nine per cent in the first quarter of this year," he continued.

Mr Harrison noted personal contract purchase is the most popular form of financing among new car buyers.

This comes after government figures revealed there was a 0.5 per cent increase in all vehicle traffic on British roads during the first quarter of 2012, when compared with the same time in 2011.

Posted by Mary Treen