The proportion of new cars purchase using dealer finance reached record numbers in 2011, new figures show.
According to the latest data from the Finance and Leasing Association, the trade body for the motor finance industry, 62.9 per cent of all new cars were bought by consumers using dealer finance in 2011 – almost a ten per cent rise on the 2010 figure.
Almost 517,500 new cars fitted with new tyres were bought using dealer finance in 2011. Finance also helped consumers purchase nearly 729,000 used cars last year – four per cent more than in 2010.
The figures also reveal that the total percentage of consumer car finance provided through personal contract purchase contracts grew in 2011 to 61.1 per cent, compared with 58.7 per cent in 2010.
Paul Harrison, Head of Motor Finance at the Finance & Leasing Association, said: "Despite some of the gloomy headlines on retail confidence, in 2011 growth in the car finance market was driven by consumers."
He added that customers were primarily driven by value-for-money offers and flexible finance deals.
Posted by Danielle Barge