PCP deals dominated the plate-change month of March with 47.6% of new car buyers and 25.4% of used car buyers opting for the popular finance option.
Analysis of new and used purchases in dealerships during March 2017 by automotive retail experts enquiryMAX showed that cash deals accounted for 31.3% of new car sales but still proved the most popular option in the used arena, accounting for 54.5% of purchases.
Contract hire and hire purchase accounted for 4.5% and 5.9% of new sales respectively, while 6.9% of buyers arranged their own finance.
Commenting on the findings David Boyce, managing director of enquiryMAX, which provides sales lead management software and retail consultancy to over 600 dealers in the UK, said: “In a record month for new car sales it was important to understand the types of finance that dealers are using to close sales. It’s clear that motorists like the convenience and affordability of a PCP contract.
“It’s clear that the popularity of PCP in the new market is now making significant progress in used sales as motorist become more comfortable with the pay-to-drive model.”
Boyce revealed that, despite the prevalent use of cash for used car purchases, 25.4% of buyers took a PCP contract on a used vehicle – a figure that is on the rise.
Hire purchase accounted for 12.7% of used sales and 7.1% took out their own finance, meanwhile.
Boyce added: “Revenue from finance is important to dealer profitability and it is also key to understand the changing trends in consumer appetite for finance.”