A new car can cost anything from £7,000 (the cheapest new car in the UK will be the Dacia Sandero) to several hundreds of thousands of pounds for the latest power-packed supercar.
But how do UK car buyers pay for their new motor, which is often the second-largest purchase of their lives after a house?
According to research by the Finance & Leasing Association (FLA) new car buyers are increasingly trusting car dealerships to supply the finance for a new car purchase.
The latest figures show new cars financed by dealerships grew by ‘double digit’ numbers for the tenth consecutive month in October this year.
New car purchases are now financed by dealer finance 70 per cent of the time in the UK compared to just 64.2 per cent in January.
Meanwhile new cars purchased by businesses using dealer finance rose by 18 per cent in October as more fleet operators turned to dealer finance.
Paul Harrison, Head of Motor Finance at the FLA, said: “2012 has been a spectacular year for car finance. Over 70 per cent of consumers now turn to their local dealership and motor finance providers to fund their new car purchase. We expect this figure to approach the 75 per cent mark in 2013. The used car market is also performing well as the range of attractive finance packages are extended to those buyers.”
Why are customers choosing dealer finance?
Dealer finance packages are often quicker and easier to arrange. It can be signed off at the dealership when the car is purchased and all of the paperwork will be delivered in one place.
At a trusted dealership such as Perrys Motor Sales, advice from sales staff will be impartial and helpful, helping the customer choose the correct financing deal for them.
Customers also get the chance to haggle and choose a beneficial interest rate – which can be as low as 0 per cent depending on the offers available at the time.
Dealer finance is a growing choice for UK customers and part of this choice is the flexibility offered with a dealer finance package.
A customer can choose the length, monthly payments and extras such as paint protection as part of a finance package and staff at dealerships can help tailor a plan to then individual customer.
Dealer finance is often seen as a more expensive route to go down, albeit one with less hassle and more flexibility.
However, in the tough new and used car market gripping the UK today, the latest figures show new customers are turning to dealer finance as dealerships offer increasingly competitive rates and deals on new cars.
Not convinced? Perrys Motor Sales offers flexible finance from 12 to 60 months and can approve that finance before the car is purchased.
Simply contact your nearest Perrys dealership to find out more about our finance packages.