Used car market shows motor finance growth

The latest motor finance market statistics published by the Finance & Leasing Association show growth in the used car market in February, as well as in the new car market.

Volumes of used cars sold to consumers on motor finance grew by 3%, and values by 11% in February. In the used car market, only four of the past 18 months have seen any growth when compared with the same month a year earlier.

New cars purchased by consumers with motor finance remained strong with the market growing by 49% in the last three months compared with the same period 12 months ago. The number of new cars sold on finance in February was 29% higher than in February 2009, although car sales were very sluggish in the first two months of last year.

Commenting on February’s motor finance figures, Paul Harrison, Head of Motor Finance, said: “It is a sign of increased consumer confidence that both the new and used motor finance markets are up. We may well be seeing a return to a more settled car-buying pattern as Government incentive schemes come to an end.

“We expect growth to continue into March, particularly as many customers will have delayed buying a new car and waited for the release of the ‘10’ registration plate.  Manycustomers buying new cars, will use their old car as part exchange, which could give a timely boost to the supply of used cars in the market over the next few months.”