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More drivers taking out dealer finance

Wed, 20 Jan 2010
Motorists bought more new and used cars using dealer finance in the past months, the Finance & Leasing Association has revealed.

In a bid to beat the VAT rise, those buying new cars took out 82 per cent more of these types of deals in November of 2009 than they did the year before.

Some four per cent of second-hand cars were purchased this way as well, a figure head of research and chief economist Geraldine Kilkelly called "encouraging".

It was the first growth in this sort of buying activity registered by dealers since March 2009.

The Finance & Leasing Association also revealed some 45.8 per cent of all private new car sales were financed through dealerships in the 12 months to November.

Recently, head of motor finance Paul Harrison expressed optimism at the prospect of seeing "positive results from the government's efforts to improve the wholesale market".

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