ACF Car Finance is reporting strong growth over the past year and says it is defying the downward trend in the third-party hire purchase market following the withdrawal of Welcome Car Finance from the sector.Norman Beaumont, sales and marketing director at privately-owned ACF, said: “Unlike many of our direct competitors, we are not reliant on market shares to fund the business, and have been less affected by the freefall of the stock market. 

“This means we have been able to deliver a rapid response to changes in market conditions and ACF continues to help hundreds of customers every month who are unable to secure a car or car finance elsewhere.”

ACF sells used cars aged between two and four years old as well as providing finance. 

Beaumont said the company had increased its efficiency, and achieved record business conversions for nine consecutive months – the average approval-to-sale conversion had increased by about 7.5%.

“It’s no surprise that many car finance companies are struggling,” he said. “Many used car dealers were without significant funding lines after the loss of Welcome Car Finance.

“We have access to group funding lines and are able to adapt more easily than others to the irrational market conditions. Our flexibility is proving crucial to our customers, and is reflected in our successful conversion rates.” 

Retail car buyers can apply to ACF by phone for finance or visit one of its eight branches – in Leeds, Manchester, Birmingham, Bristol, Dunstable, Maidstone and Isleworth.
Many car buyers, especially those with poor credit ratings, are finding it much tougher to obtain loans.

UK analysts say normal credit lines are starting to open again though it will take some time to make life easier for retail loan seekers.