Finance packages to power 2016 market
Growth in the number and variety of finance packages available to private buyers is set to power the new and used car markets in 2016, predicts Glass’s.
In the new car sector, which will see growth in registrations of around three per cent, further finance packages will need to stimulate consumer interest and provide new avenues to affordability.
However, the real innovations are being seen in the used sector, where a range of personal contract purchase (PCP) products will need to help bring more customers into a market that is starting to see signs of oversupply.
Rupert Pontin, Glass’s head of valuations, said, ‘Finance has become the core of the car market in recent years and we are seeing manufacturers, finance providers and dealers all looking to use it as a tool to continue to drive forward sales in 2016.
‘So, in the new car market, we will see more and more competitive additions to the PCP schemes available, alongside higher level of support, to ensure that stock keeps selling. This is a continuation of a policy that has proven successful since the worst days of the recession.’
The used car sector was starting to take on an appearance similar to pre-crash levels, Rupert added, with a wider choice and higher volumes perpetuating a shift from a vendor to a seller market in the wholesale sector. This would be true for even the very youngest cars, thanks to high levels of pre-registration.
‘While the trade will see values under higher levels of pressure, the winner will be the retail consumer who will have access to a wider selection of cars to choose from, coupled with finance packages designed to keep interest high in used stock at a time when new cars look such good value,’ explained Rupert.