Number of car drivers using financing rises sharply

Car finance from First Vehicle Leasing

New car sales in the UK continued to rise in February. An attractive range of models, cheap car finance deals and increased consumer confidence saw over 67,000 new cars sold in February, up 3 per cent on the same period in 2013. The latest data from the Finance and Leasing Association shows an increase of a quarter in the number of drivers using finance such as interest free deals and contract hire to acquire their new car in January. Keep reading to find out more, and we reveal the UK’s top ten selling new cars in February…

New car sales continue to rise

New figures from the Society of Motor Manufacturers and Traders have revealed that new car sales in the UK continue to rise. The number of new cars registered in February 2014 was up 3 per cent from a year ago, the BBC reports. The increase means that sales of new cars have risen for every month over the past two years, with sales up by 17.4 per cent over the period. February was a ‘typically quieter month’, the SMMT added, with 67,736 cars sold. Total sales for the first two months of 2014 were 6.1 per cent higher than the same period a year ago at 223,298. SMMT chief executive Mike Hawes said the past two years of continued growth in sales underlined the attractiveness of the new car market and growing consumer confidence. He added: “While February is typically a quieter month ahead of the March registration plate change, we expect the arrival of the new 14-plate and increasing economic confidence to maintain a steady rate of growth.”

Buyers using car finance and leasing rise by a quarter in a year

While the number of new cars sold in the UK is rising, so is the proportion of drivers using car leasing, contract hire and other types of car finance. New figures from the Finance & Leasing Association (FLA) show growth of 25 per cent in the number of cars bought by consumers using dealer finance in January 2014, compared with the same month last year. Consumer new and used car finance volumes grew by similar rates – up 24 per cent and 25 per cent respectively.

Is car finance the motor for sales increases?

Geraldine Kilkelly, Head of Research and Chief Economist at the FLA said: “Today’s figures reflect the latest FLA Motor Finance Confidence Survey for Q1 2014 that found motor finance providers remain optimistic about growth in 2014. “The majority of respondents expect retail motor finance for new and used cars to grow by up to 10 per cent over the next twelve months.”

The Top 10 selling cars in the UK in February 2014

The Ford Fiesta continues to be the UK’s top selling car and has sold almost twice as many units as its nearest rival so far in 2014. The most popular new cars with leasing, contract hire and other buyers in February 2014 were:

  1. Ford Fiesta
  2. Vauxhall Corsa
  3. Vauxhall Astra
  4. Ford Focus
  5. Volkswagen Golf
  6. Volkswagen Polo
  7. Mercedes C-Class
  8. Vauxhall Insignia
  9. Audi A3
  10. BMW 3-Series

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