The number of new and used cars bought with dealer finance slumped by more than a fifth year-on-year, according to latest figures.
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The Finance and Leasing Association (FLA) said drivers bought 21% fewer cars with dealer finance in February 2009 than in the same month last year.
And the amount of cash spent on leasing new cars dropped by 36% compared with February 2008, the FLA said.
Car finance agreements
The FLA’s chief economist Geraldine Kilkelly said: ‘February’s motor finance figures give us further evidence of the need for government support to boost liquidity in the motor finance market. But demand for personal contract purchase deals rose 3%, indicating that consumers are seeking out flexible finance agreements to help them during the economic downturn.’
Despite the year-on-year decline, dealer finance remains the most popular way to fund a new car, with 52.9% of new-car buyers choosing it in the past 12 months.
To find out about the options available to you when buying a new car, check out the Which? guide to car finance. You can also get expert advice on buying a used car and researching at which.co.uk/cars.
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