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Used car finance penetration delivers April growth

Martin Hill, chief executive, Dealerweb

Growth in used car finance drove a positive month of sales in April, according to lead management experts Dealerweb.

The Exeter-based finance specialist reported that finance penetration had jumped by 2.1% to 46% year-on-year last month, marking a 6.4% increase in used car finance sales as dealers continued to focus on used revenues.

Revenues from used car operations increased by 1.6% overall at the same time as declines in both paint protection and GAP sales of 2.3% and 8%, respectively, it claimed.

Dealerweb chief executive, Martin Hill, said: “Used car operations continue to provide opportunities for growth as the new car sector continues to see headwinds.

“It is clear that online channels are growing in importance and it is vital that dealers capture these enquiries accurately and respond quickly.

“Customers expect a quick response to their enquiry and our data shows that a prompt response is crucial for sales conversions.”

Dealers are continuing to see an increase in enquiries from online channels for used cars, which increased by 4.4% in April, according to Dealerweb.

However, it said that overall enquiries for used vehicles fell by 6.9% as a result of a decrease in telephone and walk-in enquiries.

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