Car finance sales dip in February ahead of new plates

The number of new cars bought on finance was down by 14% in February when compared with February 2010, according to the latest figures from the Finance & Leasing Association, the trade body for the motor finance industry.

Business investment in new fleet vehicles was also down, falling 16% in February compared to the number of cars bought by businesses in February 2010. Used car sales on finance were flat in February compared to the same month last year.

Commenting on February’s motor finance figures, Paul Harrison, Head of Motor Finance, said: “January was an unexpectedly strong month for car finance sales, as dealerships offered good deals on interest rates to help buyers offset the impact of the VAT rise to 20%.

“February is traditionally a slower month for dealerships, as people thinking about buying a new car may want to wait until March for the new plates.”