The Newest Developments in the Car Financing Industry

Britain will lose it in car finance industry…

Car prices will become very expensive, and hence people will not be able to buy more cars, not even on installments…

The immediate reactions after Brexit were certainly frightening. The impact of the loss of foreign exchange after quitting EU is yet to be defined. However, according to the recent reports, the car finance industry is flourishing and it is still on cruise. Have a look on some recent reports and newest developments in car finance industry.

Car Loans and Consumer Borrowing on Jump

On January 15, 2016, The Guardian published a report, claiming that credit card borrowing and personal loans were on jump during November. According to the bank, the experts feared that the families might be falling for a mousetrap, which may have been designed to recover the dropping debts. However, the bank believes that people are taking out credit loans because the banks have loosened their credit score requirements and introduced low-interest loans.

Transformations in Consumerism

The digital age and mobile accessibility has completely transformed consumerism. It is not only helping people in their research but it is also aiding them in finding the right vehicles. The digitalization has shrunk commercial markets according to consumer needs, facilitating the consumers and easing dealer accessibility for them. The consumers can now directly communicate with the dealers and gather information. This factor has largely contributed in hiked up car sales in UK. The Society of Motor Manufacturers and Traders released a report in January 2016, claiming that the car owners registered 2.3 million cars in 2015. Other factors include improved employment, improved salaries, reduced unemployment, and lower taxes. The petrol and diesel prices have also dipped down to less than £1.

Improved Confidence of Consumer Markets

The transformed behaviours in consumerism has unveiled the confidence of consumer markets in the national car financing industry. According to the Society of Motor Manufacturers and Traders, chances are that the confidence will prevail and registration and selling of new cars will remain unchanged. The chances of decline are quite low.

Luxurious Vehicles Win Over the Market

The British Car auctions Report 2013 on used cars reveals that the sale of used cars in 2013 was around 9 million. As the confidence of consumers has boosted in recent years, the buyers are spending money on luxurious sedans or special editions than regular vehicles. Around 133,434 Ford Fiestas were sold out in 2016. Other ruling vehicles of 2015 include Vauxhall Corsa, Ford Focus, Volkswagen Golf, Nissan Qashqai, and Volkswagen Polo.

Improvised Buyer Protection Bills

The Consumer Rights Act 2015 has introduced new laws to provide extra protection to the car buyers. A buyer can reject a vehicle within 30 days of its purchase. The new laws apply on new and used cars. However, the laws are designed to work in alliance with EU requirements. Brexit has not affected these laws yet.

To summarize, the latest developments in car finance industry include low interests, better buyer protection laws, improved instalment plans, and improved confidence of consumers and buyers.