How dealers can maximise the huge rise in car finance sales
The number of new and used cars bought on finance increased by 33% in November 2021, according to the latest figures from The Finance & Leasing Association (FLA). Almost 170,000 cars were purchased with a finance deal in the penultimate month of last year, with advances increasing 47% to over £3.1bn.
In the 12 months to November 2021, there was a 7% rise in finance sales and a 14% rise in the total value of those deals.
FLA comments on the figures
Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The strong growth reported by the consumer car finance market in November reflects low new business volumes reported a year earlier as the UK entered another lockdown to deal with rising cases of Covid-19.
“The market’s recovery continues to be disrupted by supply side shortages and the increasing squeeze on household disposable incomes from higher inflation and interest rates. New business volumes in the consumer car finance market are likely to be just over 2.1 million cars in 2021 as a whole, 12% lower than at the onset of the pandemic in February 2020.”
Additional sales opportunities for car retailers
Despite cautions about the growth in finance deals still not reaching 2019 levels, the huge increase on last year still provides additional revenue for car retailers following an extremely difficult 2020. The increase also provides other opportunities for retailers to boost revenue further still, with aftercare products that help protect customers’ investments in their new vehicles.
Learn more about Car Care Plan’s award-winning aftersales products.