High Street lending rates have remained stable through the month and look set to remain that way for some time to come.

There has been some upward movement on the cost of protection insurance with HSBC rates increasing by around 0.5% but competition is keeping rates down.

However the market is moving against the banks and direct lenders. High street rates are looking increasingly uncompetitive as carmakers promote 0% finance on selected models. With most customers offering a trade-in, 40% deposit and 0% over two years can look attractive.

Dealers should be making full use of promoted finance rates to not only close the sale but also keep other F&I business in house - not walking down the high street. Dealers should be able to match, and beat, any offer from the big name banks and direct lenders.

Remember, the headline rates of 8.9% usually advertised by high profile direct lenders such as Alliance & Leicester or Tesco, are available only on loans of £10,000 or more. For a more typical car loan of £5,000 the high street APR rate is likely to be anything from 11% to 13% which can be easily matched by a manufacturer's captive or your independent finance house.

All the evidence suggests customers still prefer to buy a car and arrange finance at the same time.