Quick links to latest articles:

Car loans 'up by a fifth' in March

By Joel Stanier

22 May2021

Car keys If you're thinking about taking out a loan to buy a new car in the near future, you might be pleased to learn that the number of cars bought on finance increased by more than a fifth (22%) in March.

Despite difficult economic conditions making loans harder to come by than they used to be, car finance has stayed relatively strong. According to figures from the Finance & Leasing Association (FLA), consumers bought 182,378 cars on finance during March alone.

And the total value of car loans had actually increased by a third (33%), suggesting people are becoming more comfortable with borrowing more.

Paul Harrison, Head of Motor Finance at the Finance & Leasing Association, commented: "The strong new and used car finance growth figures in the important month of March are good news for the UK motor industry. This year the number of new cars sold is 22% higher than last year, which shows that forecourt finance continues to be extremely popular.

"Motor finance allows customers to negotiate a flexible finance package to suit their budget. Personal contract purchase (PCP) remains the most popular with new car buyers. Encouragingly, used car finance has also performed well, with the number of financed cars sold up by 9% in the first quarter of this year."

A loans expert at Think Money said: "Car buyers can often find very competitive finance deals on the forecourt, although it's also worth checking your other options. With interest rates currently low, some people may be able to find a cheaper deal with their bank. And of course, the more you can save in advance, the less interest you'll pay in the long run."

Image iStockPhotos / ARENA Creative

Fill in our form for your free loan quote

About your loan
Your information
By continuing, I agree to the privacy policy

Tags: car, loans, car finance, new cars, FLA, Personal contract purchase, PCP, interest rates

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.

All About Money Limited © 2013. All rights reserved. 42 Boston Rd, Sleaford, Lincolnshire NG34 7ER.