British drivers put almost a million new cars on finance during 2015, resulting in almost £12.6 billion worth of motors. This averages at £16,500 per car buyer.
Statistics collated by the Finance and Leasing Association (FLA) showed a 10% growth in new car sales.
The 10% increase accounts for private car sales only, it doesn’t account for the half a million business registered vehicles that were bought on finance last year.
Due to a very buoyant December, latest figures revealed a 22% increase in private car finance during the final month of 2015.
New model car sales financed at Dealerships reached 81.4% in 2015, this was up from 75.9% in the previous year.
These encouraging results mean that eight out of ten new cars out on the roads in 2015 were not bought outright by the car buyer.
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There was also an 8% growth in the used car market with 1.15 million second hand cars bought through attractive car finance deals last year.
The strength of the car finance market in December 2015 particularly, reflects strong consumer confidence with low interest rates, employment and inflation.
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Judging by the latest ‘Retail Motor Finance Confidence Survey’ The FLA expects to see a new business growth of up to 10% in 2016.