LONDON, June 28, 2012 /PRNewswire/ --
Motorists using car finance to buy new cars has reached record levels and personal contract purchase (PCP) continues to take the largest share of the new car finance market (60 per cent of all dealer finance). New research reveals that over 20 per cent of motorists would buy a new car in the next three months, if they were offered low monthly payments on finance of up to £200 per month and a discount on the list price of up to 30 per cent. This compares to 7 per cent of motorists who are currently looking to buy a new car in the next 3 months.
The recent independent research*, conducted by Finance A Car, the world's first car finance comparison website for new cars, also reveals that a third of consumers would buy a new car online if the deal had a very good discount and if it was supplied and delivered by a main dealer, with the manufacturer's warranty.(*Source: Redshift Research, 1,000 motorists).
Not surprising, the most popular finance payment option is monthly payments of £99, with nearly one in four car buyers opting for this. However, these customers are willing to pay a £1,500 deposit upfront to secure this low monthly payment, which means that they can actually drive most city cars if they have access to a good deal.
The research also shows that Londoners are most likely to replace their current car with a similar new car if the monthly payments were the same or less than what they are currently paying (one in four), followed by car buyers in the East of England (19 per cent) and Scotland (18 per cent).
Nadim Saad, Co-Founder and Director of FinanceAcar.co.uk comments: "This research shows there is a huge appetite amongst motorists for new car finance deals. In fact, with the right discounts, potential demand for new cars increases by 300 per cent from consumers who say they are already looking to buy a new car in the next 3 months.
"Over the last year or so, there has been a huge growth in the amount of new car finance provided to consumers. The recession has helped this growth, as car finance offers new car buyers more flexible, low-cost and affordable finance options.
"At FinanceAcar, we aim to help motorists buy new cars, by making it more affordable through unbeatable low monthly repayments. We have removed the need for new car buyers to shop around for the best price and finance deal, as our website combines the deals for both, in one unbeatable low monthly price."
Finance A car (http://www.financeacar.co.uk) is a UK online car marketplace. It was voted by Seedcamp (one of Europe's largest groups of tech investors) as one of the top 10 startups in Europe in 2010 and is a Microsoft "Startup of the day" company. It is the UK's first car finance marketplace and it enables car buyers to choose their new car, compare millions of monthly prices from dealers and top UK finance companies, apply for finance, and, once approved, have the car delivered to their door.
Media contact: Nadim Saad, 0800-043-1340, Email: press@FinanceAcar.co.uk