Motorpoint defies credit crunch with record finance sales

Credit crunch? What credit crunch! According to a new poll by Motorpoint over half of motorists plan to use finance to purchase their next car.

The new study by the UK’s leading car supermarket group found that 53% of drivers planned to use car finance to pay for their next car.

This news comes as newly-published figures from the Finance and Leasing Association reveals that lending from motor dealers now funds 49% of all new private car sales (up 2% on 2007).

This is borne out at Motorpoint, where demand for Boomerang has reached record levels. Sales for its Personal Contract Purchase plan are up 6% for the first half of 2008 as ever-increasing numbers of customers turn to Boomerang to fund the purchase of either a new or used car. Today, one in three cars sold by Motorpoint is done through finance.

Launched in 1999 in partnership with Blackhorse Motor Finance, Boomerang combines a low deposit with low monthly payments backed by a minimum guaranteed future value.

Says David Shelton, Managing Director of Motorpoint: “With many people finding it increasingly difficult to source credit from other lenders, we are finding that our highly-affordable point of sale products such as Boomerang are proving extremely popular, enabling customers to drive a car that their budget wouldn’t ordinarily allow.”