The number of consumer news cars finance by dealerships also decreased in the same period by 11%, according to figures released today by the Finance & Leasing Association (FLA).
The used car sector sawd new business volumes down 13% in November due to a 15% fall in the number of used cars bought on finance by consumers.
Geraldine Kilkelly, FLA’s head of research, said: “The concern over dealer finance continues with this latest set of figures demonstrating that the market remains weak.
“Penetration of the private new car market reached a new low with just 46% of private new car registrations financed via dealerships. This compares with 57% at the same time four years ago and underlines the urgency of dealers and finance houses working together to reverse the trend.
“Key is to engage prospective consumers before they have decided how to fund their vehicle.”
The FLA has set up consumer-facing website www.financingyourcar.org.uk and is developing a number of initiatives with dealers including accredited training.
| New business | November 2006 | % change | 12 months to November 2006 | % change | ||||
| Finance provided (£m) | ||||||||
| New cars | 910 | -3% | 12,103 | 2% | ||||
| Used cars | 500 | -5% | 6,434 | -4% | ||||
| Cars financed (No.) | ||||||||
| New cars | 71,811 | -5% | 997,293 | -3% | ||||
| Used cars | 50,013 | -13% | 677,703 | -10% | ||||
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