75 per cent of private new car buyers now use finance

Mitsubishi car dealerAlmost 900,000 private new car buyers in the UK are paying for their motor on a dealer finance plan rather than stumping cash up front.

The 897,593 finance deals for 2014, revealed by the Finance & Leasing Association, is a new record for dealer finance in the UK and is a 13 per cent full-year rise over 2013.

It means dealer finance was used to secure 76.1 per cent of all new cars sold to private buyers last year.

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.

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

Dealers also financed 1.05 million used cars in 2014, itself a 14 per cent rise on 2013.

Managing Director at @editorial_mr. Runs a bit. Loves the motor industry. https://about.me/richardaucock

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