Quantcast
Is your car your pride and joy, or are you ready for a change? Let us know and you could win a £300 John Lewis voucher | No thanks

Car finance 'will be decisive in forming next year's auto market'

Fri, 08 Jan 2010
A consultant has predicted that car finance will be the main factor in determining the health of the automobile industry in 2010.

PricewaterhouseCoopers' Michael Gartside relayed his professional opinion suggesting the new car market would not be as hard hit as feared by many.

However, with the VAT increasing from 15 to 17.5 per cent, consumers could need a fiscal boost to help demand.

"The government needs to ensure that credit availability improves," he explained.

Responding to industry figures' concerns that the end of the cash-for-bangers scheme would have a big impact on the market, he stated: "We also believe that private demand won't be as negatively affected by the ending of the scrappage scheme as many feel."

On a whole, they predicted new car purchases would fall "marginally in 2010" but would not be as grim as some commentators, such as the Society of Motor Manufacturers and Traders (SMMT), seemed to be anticipating.

The SMMT also pointed to availability and affordability of car loans and finance, however, as being a critical factor in the health of the industry next year.

If you want to know how to find the best deal for your car insurance, finance or warranty, visit our car insurance calculator.
ADNFCR-1081-ID-19548052-ADNFCR

Comments

Add a comment

 

Ask Honest John

Value my car

Amount to borrow
Sorry. The minimum loan amount is £1000
To pay back over

My credit score

Best available rate 9.20%

Total repayment £9,304.93

Total cost of credit £1,804.93

£155.08

60 monthly payments

Apply now

Representative example

The Representative APR is 13.2% (fixed) so if you borrow £7,500 over 4 years at a rate of 13.2% p.a (fixed) you will repay £199.21 per month and repay £9562.20 in total.