Demand for car finance is still pretty strong despite interest rates going up, up up. Auto Trader is reporting that engagement is up 46% on pre-pandemic levels. Bearing in mind the entire country is in the financial mire, that’s a pretty impressive figure.
The figures are coming from Auto Trader’s own platform, which it reckons is passing more than 25,000 leads to retailers each month.
Auto Trader’s Fiona Mackay said: “All signs on our marketplace point to the growing importance of finance, especially amongst used car buyers. With average second-hand prices up around 47% on pre-pandemic levels, coupled with the current economic turbulence, finance offers many car buyers a more manageable route to access their next car.
“Although the vast majority of our retailer partners advertise finance on their adverts, nearly a quarter don’t – with more price conscious consumers searching by monthly payments, a significant, and worrying, number of businesses are at risk of missing out.”
This is despite the fact that the cost of borrowing has risen on new cars. The average rate has risen from 4.6% in November 2021 to 7.7%.
Apparently around two thirds of people are in a hurry to get the deal done, then and there at the dealership.
Fill your boots, we say.