Forecourt finance remains the most popular way to buy a new car, with over half (52.9%) using dealer finance according to the latest figures from the Finance and Leasing Association.
The figures are 3% points up on the year before.
Figures in May showed the smallest drop in the number of new cars bought by consumers on dealer finance since September 2008. Volumes for this market in May 2009 were 18% lower than in May 2008.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “It is encouraging that May’s data showed the smallest drop for eight months. This reflects the great finance deals currently on offer to help consumers buy a new or used car.
“But if dealers are to continue to offer competitive finance to customers on the forecourt, motor finance companies need to be able to access affordable wholesale funding. The Government needs to look again at providing access to reasonably priced funding for all lenders in this market.”
To download the FLA’s data on cars bought on finance by consumers through dealerships, click here.