According to figures from the
Finance and Leasing Association (FLA), consumers purchased 3
per cent more
used cars by taking out dealer
car finance in March of this year, compared with figures from
last year.
However,
new car sales slumped by 27 per cent, whilst
leasing and
personal contract purchase also fell.
Drivers are though to be looking for good deals on used cars,
with
new car sales figures falling across the board.
March is usually the best month of the year for
car dealers, but new
vehicle finance slumps have damaged this. The Head of Research
and Chief Economist at the FLA, Geraldine Kilkelly, reportedly
commented: The
used car market is faring better than the
new car market . This is a great time for consumers to
buy a used car, as although volumes are up on this time last
year, the value of
finance provided is down – used cars are cheaper than a
year ago. But March’s figures reflect the effect of the
recession on the
motor finance market. This highlights the need for Government
action to ensure the supply of finance meets demand.
