27 April 2009

For immediate release

New research shows dearth of direct loans hitting car sales

The latest report from the automotive research specialist Trend Tracker - The UK Retail Car Finance Market 2009 - shows just how hard the financing of car purchases has been hit by the credit crunch.

• The value of the UK retail car finance market has fallen by 58% in real terms in the last five years.
• Direct lending has fallen faster than dealer finance.
• The weakness of the car market may combine with their weakened balance sheets to encourage some banks to exit car finance.
• With low interest rates already in place, the return of consumer confidence will be key to the recovery of demand.
• Car finance demand will return over the next five years, but not to its peak level of 2003.

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