UK sees rise in showroom borrowing

UK sees rise in showroom borrowing

In order for them to pay for new cars, a record number of loans have been provided to buyers by dealers, research suggests.

According to figures from the Finance & Leasing Association, 64.5% of car buyers signed up for showroom borrowing deals in February - a record amount.

Commenting on the research, the association's head of motor finance, Paul Harrison, stated: "The proportion of new cars bought using dealer finance has grown from around 47% two years ago. Retail loans for used cars are also up, by 9% in February."

However, separate findings from a GForces study suggest that key online finance tools are only offered by 38.5% of the country's top dealer websites at present.

The automotive web management firm's commercial director, Tim Smith, stated: "Most dealer websites have no facility for visitors to generate simple finance quotations.

"Dealers routinely offer low-cost finance to attract customers, but many fail to deploy the simple online tools to help them secure a sale plus associated finance business."

Copyright Press Association 2012