Even more buyers choosing dealer finance

dealer finance

dealer finance - Credit: PA

Car buyers are relying on finance more than ever, new figures have revealed.

Data from the Finance & Leasing Association (FLA) show a 10% increase in consumer new car finance agreements taken up last year compared to 2013.

It now means that more than 76% of private buyers choose dealer-arranged finance when buying a new car.

Comparable figures for purchases made with personal loans are not available at this time, but it is expected that more than 90% of private buyers use some form of finance.

Commenting on the figures, Geraldine Kilkelly, FLA’s head of research and chief economist, said: “There has been strong growth in consumer motor finance provided through dealerships by FLA members over the last couple of years.

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“Our most recent industry confidence survey suggests that growth is likely to continue in 2015, but at a slower rate than in 2014.”

Some major manufacturers reportedly return higher profits from their finance and money-lending departments than from profit margins within the cars themselves.

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