Surge in new car finance: Dealers fought back from the effects of the recession in November to achieve sharp increases in the volume of new cars sold with the help of point-of-sale finance.
Data from the Finance and Leasing Association shows that 40,734 new cars were bought by retail customers – an 81% year on year increase – thanks to advances totaling £515 million, an increase of 79%.
The scrappage scheme was a major reason for the improvement.
November 2008 was a low point for the industry as the credit squeeze gripped tighter. But finance companies and their dealers are heartened by the improvement.
In the three months to November 156,542 new retail cars were sold on finance (25% up year-on-year), with advances totaling £2.03 billion (28% higher).
The figures for the 12 months to last November show declines in volume (by 15% to 426,221) and value of advances (by 11% to £5.548 billion).
The used car sector did less well. Advances in November were up 5% to £421 million and volume by 4% to 44,260.
But the three months to November showed declines (advances by 5% to £1.379 billion) and volume (by 10% to 143,622).
In the year to November advances dropped by 14% to £5.47 billion and volume by 11% to 614,296).
There was no change in the number of new business cars bought in November, or in the three months to it, but the volume for the year to November was 19% lower at 359,826.
There were sharp falls in the volumes of used cars sold to businesses on finance – by 43% to 2,875 in November; by 25% to 10,972 in the months to November; and by 22% to 46,407 in the year to that month. (AM Online, 28.1.10)

GM agrees deal for Saab:  General Motors and Spyker Cars have reached a binding agreement on the purchase of Saab Automobile AB.
As part of the agreement, Spyker intends to form a new company, Saab Spyker Automobiles.
The sale will be subject to customary closing conditions, including receipt of regulatory, governmental and court approvals. Other terms and conditions specific to the sale will be disclosed later.
The Swedish government is reviewing the transaction and the related request for guarantees of a Saab Automobile loan from the European Investment Bank.
The transaction is expected to close in mid-February, and previously announced wind down activities at Saab will be immediately suspended.
"Today’s announcement is great news for Saab employees, dealers and suppliers; great news for millions of Saab customers and fans worldwide, and great news for GM,” said John Smith, GM vice president for corporate planning and alliances.
 “General Motors, Spyker Cars, and the Swedish government worked very hard and creatively for a deal that would secure a sustainable future for this unique and iconic brand, and we're all happy for the positive outcome."
Nick Reilly, president, GM Europe, said: “Throughout the negotiations, GM has always had the hope to find a solution for Saab that would avoid a wind down of the brand.
“We’ve worked with many parties over the past year, including governments and investors, and I’m very pleased that we could come to such a good conclusion, one that preserves jobs in Sweden and elsewhere. GM will continue to support Saab and Spyker.” (AM Online, 26.1.10)

Dealers look to second half for recovery: Accountancy firm Baker Tilly said today that "genuine recovery" in the UK would not occur until the second half of the year.
It was responding to figures from the Office for National Statistics, which showed the UK economy had grown by 0.1 per cent in the last three months of 2009.
The economy had previously contracted for six consecutive quarters - the longest period since quarterly figures were first recorded in 1955.
David Hudson, London Head of Formal Insolvency, Baker Tilly Restructuring and Recovery LLP, said:
"Motor dealers will be more concerned at the end of the scrappage scheme on their franchises than a 0.1 per cent increase in the economic health of our country.
"Only when the capacity gap sufficiently narrows, which we don't expect until the second half of the year, will the majority of the manufacturing base see genuine recovery.
"The stark fact is that many businesses will fight to survive during 2010 and the tiny, 0.1 per cent increase in Britain's economic health will mean nothing to them on a practical level."
He said there was "a long way to go". (Motortrader, 26.1.10)