Posted on 12.3.18
Danielle Clements, Senior Consumer Affairs and Litigation Solicitor, has been featured in the Independent providing expert comment for their article on how British consumers are losing interest in buying new cars on finance.
Buying a brand new car with a relatively small deposit and monthly fee can be more immediately affordable than buying an older car upfront. However, the latest figures reveal that the number of new cars registered in February 2018 fell by 2.8 per cent compared with the same month last year, making it the 11th month in a row to show a decline. Cheaper to access, smarter to drive, it’s easy to see why new cars on credit have been so attractive. But alarm bells have sounded in some areas and last summer the Financial Conduct Authority announced it would be closely scrutinising the car finance market to better understand its lending practices.
Danielle Clements said that concerns over whether credit is being sold appropriately is one reason would-be buyers are “falling out of love with car finance”
“In the light of this pending investigation, consumers will certainly have some trepidation about entering into new car finance deals and instead will often consider a range of finance options rather than the once popular use of PCP and car finance.
“What’s more, dealers also need to conduct their own reviews to ensure that their sales processes are robust, that staff are properly trained and not incentivised to promote PCPs over other alternatives and that as businesses they are focused on achieving good consumer outcomes.”