It seems that September was a busy month for those buying cars on finance. The latest figures from the Finance and Leasing Association (FLA) have revealed that a whopping £2.64billion worth of new wheels were purchased in September alone – equating to a 15% rise on the amount borrowed last September.
This is a colossal sum – but no surprise when you consider that almost 80% of new cars are now purchased on finance. We’re pleased to say that used cars on finance are also on the up – with borrowing up by 13% in comparison to last year, at a hefty £1.1 billion. The figures say that in 2015 there were 9% more used cars purchased than in 2014.
Experts are claiming that the reason for this huge surge in buying is the temptation of the shiny new ‘65’ plate that was released in September. But is a little bit of number-plate vanity really enough to drive buyers and boost the car finance market in such a way?
Whilst the numbers might seem phenomenal, they aren’t quite record-breaking – that came back in March when £2.74billion was borrowed by car buyers. And remember what also came out in March? You guessed it… It was the launch of the new ‘15’ plate.
The FLA’s head of research and chief economist, Geraldine Killkelly said “'In September, the point-of-sale consumer car finance market has continued to grow in line with our expectations for 2015 as a whole.
“The range of finance products available to consumers through car dealerships has contributed to more than four years of consecutive monthly growth in new business volumes.”
Another record high was the percentage of new car sales financed through dealerships – this was 79.6% in the 12 months leading to September 2015, suggesting eight in ten cars are now sold through borrowing.
With manufacturers and dealerships now offering a raft of attractive car finance offers, such as our 0% finance deal, more and more people are choosing to borrow in order to fund their dream car. In fact, consumer credit soared in September – chalking up annual growth of 8.2%. This is the biggest leap since before the recession hit, showing that consumer confidence is growing and sales are on the rise once again. If you’re ready to shop for your dream car, you can find out more by visiting our finance page or contacting one of the cartime team.