FLA report an increase in number of new cars bought in 2015 on dealer finance
The Finance & Leasing Association (FLA) has reported an increase by 10 per cent in the number of new cars that were purchased with dealer finance in 2015.
The figures show that 984,077 new cars were purchased on dealer finance by private individuals in 2015, this is a 10 per cent increase on 2014. The last month of last year saw the biggest rise overall, with FLA recording a 22 per cent rise in December, with 67,667 new cars sold on dealer finance to individuals.
The Finance & Leasing Association (FLA) reported that 81.4 per cent of the new cars purchased on finance in 2015 were financed by FLA member dealerships; this is compared to 75.9% in 2014. Last year’s increase in new car dealer finance is matched by an impressive automotive sales year; with the Society of Motor Manufacturers and Traders (SMMT) reporting 2.6million new car registrations in the UK in 2015.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “It was another record year for the point-of-sale consumer car finance market… The strength of the market in December reflects strong consumer confidence buoyed by low inflation, interest rates and unemployment.”
Further statistics released by FLA shows that used cars sold with dealer finance also increased in 2015; with 1,147,387 used car bought and purchased in this way, a rise of 9 per cent compared to 2014. And businesses were also taking advantage of the low interest rates to invest in business vehicles, with 508,527 new cars bough on dealer finance, a 6 per cent increase.
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