The finance sector provided loans worth more than £9 billion to help retail buyers acquire more than 650,000 new cars in the 12 months to November, a 34%/£2bn-plus year-on-year increase.

The Finance & Leasing Association says the growth is mainly because of good deals available in showrooms.

Dealer finance rose to a record 70.8% of the total in the year to November – up 0.6 of a point from October.

 

New PCP agreements now account for 63% of the total by value.

November loans reach £758m

FLA statistics reveal significant year-on-year increases in showroom loans to new car buyers in November, when advances totalled £758m (+40%) on 52,057 units (+35%).

The 12-month total was £9.264bn (+34%) to finance 654,359 new registrations (+26%).

Gains in used cars sold with showroom loans were more modest.

The total sold in November was 61,485 (+5% on November 2011) with advances 10% ahead at £587m.

The 12-month statistics show a 7% advance in loans to £7.201bn to finance 783,499 cars (+8%).

Business car loans down 4%

There was a 4% drop to 30,018 in the volume of new cars sold to companies with dealer
loans in November, but the longer trends showed a 6% rise to 398,334 in the six-
month period.

FLA statistics show big increases in used cars sold to businesses with loans by dealers, an indication of how companies are cutting expenditure wherever possible.

 

The total of 4,902 used cars acquired by businesses on dealer finance in November was 69% higher year-on-year.

Longer-term trends were also well up: by 86% to 16,824 for the previous three months and 55% over the 12 months.