Forecourt finance is most popular way to buy a new car
Posted by Fiona Birkwood
Forecourt finance is currently the most popular way of buying a new car, recent research has revealed.
Figures from the Finance & Leasing Association found that, in the last 12 months, more than 54 per cent of consumers chose to buy a car through finance from a dealer.
This is an increase of 1.6 percentage points on the level recorded in February.
Paul Harrison, head of motor finance at the Finance & Leasing Association, said: "It was a mixed month for dealers – the proportion of cars sold and the value of loans rose once again, although the actual number of vehicles sold on finance fell."
He went on to say, however, that consumer's budgets are continuing to tighten and so the growth in the value of finance was unexpected.
Last month, the Finance & Leasing Association revealed that the number of new cars bought on finance in February decreased by 14 per cent when compared with the same month of 2010.
In America consumers have the option of financing through their own bank or credit union; in many cases they can obtain better rates this way instead of through the dealership