Car finance agreements rise nearly nine per cent
More than three million car finance agreements were written in the first six months of the year, representing an 8.9% increase.
A study of Solera cap hpi’s Market Eye database revealed that 3.13 million car finance agreements have been signed so far this year, with new car finance rising sharply and used car finance remaining stable at historically high levels.
New car finance agreements rose 19.5% year-on-year to 1.29 million, with 234,126 new deals in July alone. Meanwhile, the 333,031 new agreements signed in March was a two-year high.
The data also revealed that monthly totals have risen year-on-year for 17 months in a row.
Finance agreements for used cars has also enjoyed a strong first half to the year, up 2.5% to 1.84 million deals, with June figures increasing by 3.4% year-on-year to 302,733.
Chris Wright, regional vice president at Solera, said: “The finance market entered the second half of the year with strong momentum. The recovery in new car finance is now well established, while the used market continues to demonstrate the consistency that has underpinned the industry for several years.
“Competitive manufacturer finance offers, improving vehicle availability, and growing consumer confidence are helping to support demand for new cars, while used vehicle finance continues to provide the scale and stability the market depends upon.
“Total finance agreements are now approaching a rolling average of half a million a month, and the outlook remains encouraging. The challenge for lenders and retailers will be ensuring finance products continue to meet changing consumer affordability requirements as competition across the new car market remains intense.”
