Posted on: 14/08/2014
172,907 new cars were registered in July, a rise of 6.6% and the 29th consecutive month of growth, according to statistics from SMMT. Are new improved finance deals the cause?
Economic confidence and attractive finance have driven the market up 10.1% year-to-date to 1,460,172 units.
Faster-than-expected first half-year growth prompts upward revision of 2014 market forecast to 2.45 million registrations, up 8.1% on 2013.
Mike Hawes, SMMT Chief Executive, said, “July saw the new car market extend its record period of growth to a 29th month, as confident consumers took advantage of an array of new products and attractive finance deals on the latest fuel-efficient new cars.
“The continued positivity has led to an uplift in the SMMT full year forecast to 2.45 million passenger car registrations, a rise of 8.1%. However, the more moderate growth of the last three months shows that overall demand is beginning to stabilise.”
What role do finance deals play in this trend?
One of the primary factors driving new car sales in the UK has been the availability of great finance deals. Four in five new-car purchases are now made on credit in Britain, according to the SMMT, with many customers effectively renting a new car through personal contract purchase (PCP).
In this article from The Guardian, Mark Coe, an IT consultant from Southend in Essex, was one of a number of buyers who intended to buy second-hand until he saw how good the finance deals were.
"Because I was very particular about what I wanted, the dealers couldn't get it second-hand," he says. "Instead, at one dealership, I saw a new Audi A1 that was way over my budget, but when I realised I could get it for £180 a month with free servicing for five years and other extras, I put down £10,000 and bought it."
Ruth Speakman, head of communications at Exeter-based Blur Group, bought her first new car nearly five months ago. "I hadn't planned on buying new, and in fact test drove a few second-hand cars," she says. "My priority was low MPG, but when I walked into the Toyota showroom, they could do such a good deal that it made sense to buy new." She bought a Yaris Hybrid using a PCP plan under which she put down £2,000 upfront and pays £290 a month.
Have you taken advantage of one of these great finance deals? Tell us about in the comments section below.
You can find more car tips and driving advice in Sell My Car Quick’s blog.
Contact us on: 01795 227576
Go direct to an agent: 07583 734602
Sell My Car | Scrap My Car | Cash for Used Vehicles | Sell My Caravan, Motorbike, Van for Cash | Buy My Car for Cash Today | We Buy Cars for Cash UK |
Car Valuation | Car Recovery | I Need To Sell My Car | Car Collections | Second Hand Car Buyers | Junk Car Buyers | Sell Your Car Quickly | Sell My Damaged Car
Copyright © 2015 Recycle Motors Ltd. All rights reserved.