According to recent reports from the
Finance and Leasing Association, sales of
used vehicles fell by some 23% during August. Sales of
new vehicles purchased by consumers using dealer
car finance were reported to have grown last week, the first
increase since July 2008.
However, despite the positive reports, the true state of the
car market remains fragile. Wholesale
funding costs make the business extremely tight for
car dealers, and the FLA are desperately seeking assistance
from the government. Politicians are in discussion with the
European Commission regarding a
guarantee scheme .
Experts at the FLA called for the Government to ease the pressure
on the
car industry, and stressed just how important
car companies
and car finance was for the wide economy. The long-term health
and stability of the industry is essential for an economic
recovery, the FSA claimed.
