Dealers will now be able to offer 48-month contracts for vehicles less than two and a half years, and 50,000 miles, old. The existing terms of 42 months still apply for vehicles up to four years and 80,000 miles.
Tom FitzSimmons, Credit Acceptance managing director, said: “Industry trends indicate sub-prime customers are seeking newer vehicles and dealers must be given the scope to capitalise on these changing market conditions. Customers are more likely to pay full term if there is more value in the car. Dealers will see the benefit in better value trade-ins.”