The Finance and Leasing Association (FLA) has reported a fall in demand for car dealer finance . It was reported that there were 19 per cent fewer cars were sold on dealer finance schemes than in January 2009.

This figure is in line with a recent survey by HPI that showed that 56 per cent of car buyers think that the rates offered by car dealers were not competitive, despite 74 per cent of respondents saying that they would be interested in car credit.

Daniel Burgess of HPI pointed out that Car finance through dealerships has gained a reputation as being uncompetitive, pointing out that the general lack of its availability was deterring buyers from going to dealers. There have also been many well-known lenders who have now left the car finance market.

One solution for sellers would be to offer a range of both convenient and competitive car finance actually in the showroom, so that customers can easier access their finance options and choose the most suitable.

Of course, the Internet is also a flexible and cheap way to assess the best dealer finance for your circumstances, and there are many sites that present competitive rates based on the customer’s personal credit rating and the type of car.