Car finance specialists, FinanceAcar, said today that more than half of recent quote requests have been for executive and luxury brands with people looking for BMW finance, Volkswagen, Land Rover and Audi car leasing. A UK company that provides customers with the cheapest monthly price to drive the car that they want, FinanceAcar said that despite an environment of government cost cutting and the rise in fuel prices and VAT, it had noticed a distinctive upward trend in the demand for more upmarket and executive cars.
However, delayed business renewals could relate to the surge in interest, as Simon Norman points out: “In the lead up to the new March plates, more than 50% of all new car enquiries on our website relate to what can be considered upmarket marques. In particular, we have seen increased interest in relation to car finance products such as car leasing for the upmarket German brands. This has in part been due to businesses with a build-up of delayed renewals for their executive cars now looking to update their vehicles”.
Last year, there was a slight increase in the number of new cars sold in the UK, at 2.03 million, despite December being 18% down on the previous year (4% if the effects of scrappage are removed). This means that the 2010 new car market was only up by 1.8% on 2009’s figures. However the trend seen on FinanceAcar was also confirmed across the market as executive brands outperformed in 2010 with BMW and Audi 10% up, Volvo up 7.5% and Land Rover growing a massive 27%, according to the Society of Motor Manufacturers (SMMT).
Can the upmarket brands sustain this growth? Sainsbury Finance stated that 7.6 million people were intending to buy a car between September 2010 and February 2011, proving a staggering 49% increase on the previous year. Additionally, of those 7.6 million, 1.85 million anticipated spending more than £10,000, while 390,000 said they expected to pay more than £21,000; much more than the approximate average £12,000 cost of a car in the UK.
However, SMMT has stated they believe that 2011 could prove a tough year for the new car market with the likelihood of numbers ending on 1.93 million due to government cost cutting and fuel hikes. FinanceAcar believes that if any growth is achieved it would most likely be seen via the car leasing products such as personal contract purchase (PCP) which enables car shoppers to get a lower monthly price by avoiding the problem of funding the full cost of a car.
FinanceAcar (http://www.financeacar.co.uk) is a UK car finance specialist. It is the world's first car finance marketplace powered by the world's first car finance comparison engine that compares all car finance products for new cars (car leasing, hire purchase and car loans) in one place making it comprehensive in car finance compared to ordinary comparison engines that only compare car loans. The website compares finance from top UK lenders for 6,000 vehicles and offers more than 1,000,000 different prices. The site allows car shoppers to choose their car by make or budget and within seconds it presents the best finance product and best UK monthly price for that car based on the monthly cost of ownership. Once the user obtains the best monthly price, they can get a full personalised quote, obtain a credit check, apply for finance and have their chosen car delivered to their door.