Car buyers shrugged off a national dip in credit lending during June, taking out £1.09 billion of car finance despite underlying concerns about the health of the economy, figures showed.
Car insurance providers will encouraged by a 13% year-on-year rise in the amount of money forwarded for car purchase during June, as more and more drivers decided to upgrade their cars over the summer months.
Figures released by theFinance & Leasing Association (FLA) showed that car finance bucked the overall downward dip in lending in the UK during June, when lending levels slumped 8% on the same time last year.
A total of £4.27 billion was borrowed during June, with unsecured loans, 'buy now, pay later' store credit deals and credit card lending all taking the hit as consumers remain coy over the long-term prospects for the economy.
The figures revealed that the number of people taking out unsecured loans and store credit products both fell by about a third, while credit card use dropped by 9%.
Fiona Hoyle, head of consumer finance at the FLA, said: "This month's figures suggest that consumers are uncertain about the economy.
"It may be that they are waiting to see the impact of public sector expenditure cuts on disposable income before making any long-term repayment commitments on credit."
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