Market predictions
- 72% of finance brokers expect new car registrations to level off during 2016
- Car buyer confidence remains high
- Low interest rates key to maintaining buoyant market
MOST of the UK’s largest motor finance brokers expect new car registrations will slip into neutral over the course of 2016, according to the latest Paragon Car Finance Headlight Survey.
While car buyer confidence remains high – unchanged at 7.1 out of a possible 10 – compared with the previous survey, almost three-quarters of brokers (72%) feel that a levelling off in new car sales is on the cards.
In Paragon’s latest quarterly survey of the UK’s top 30 vehicle finance brokers, one quarter (24%) of brokers surveyed continue to see scope for a further increase in sales in 2016, with only a small minority (4%) expecting registrations to drop.
For those optimistic for further gains on 2015, low interest rates (80%), continued economic growth (60%) and manufacturer support (60%) are highlighted as the most important factors supporting sales.
Meanwhile, brokers say the biggest potential threat to buoyancy comes from the possibility of an interest rate rise (52%), alongside the risk of an over-supply of new cars into the UK market (29%).
Appointed Representative Opportunities with Wessex Fleet
Have you thought about growing your broker business? Are you looking for opportunities for growth? Then why not consider joining Wessex Fleet as an Appointed Representative?
Keeping you on the move with leasing solutions tailored to your needs
Leasys is the proud Contract Hire partner of the Stellantis brands, offering mobility solutions from medium and long-term rentals to management systems for company fleets.We work with Brokers to support all their customers requirements.
Accelerate your business with QV Systems & Leaselink
Unlock unparalleled efficiency in vehicle procurement with QV Systems’ Accelerate, now seamlessly integrated with Ebbon Automotive’s Leaselink. Tailored for brokers and funders, this integration streamlines the entire process from quote to delivery, empowering you to effortlessly source and order vehicles for your clients.
Julian Rance, head of Paragon Car Finance, said: “After several years of strong growth, the broker community is clearly expecting to see a gradual cooling off in the rate of new car sales growth.
“Encouragingly, car buyer confidence remains high and with expectations that UK interest rates will now stay lower for longer, we should continue to see healthy levels of activity across the new and used car market in the UK for the foreseeable future.”