An optimistic outlook has been reported in the FLA Retail Motor Finance Confidence Survey.
Ask any driver whether or not they would like to drive away in a new car and the answer will almost always be yes. While many of us may be perfectly happy with our current motor, there is nothing quite as thrilling for car lovers as getting to grips with a brand new model.
Money – or a lack thereof – is often the main stumbling block to new car purchases, however, as people feel reluctant to part with their hard-earned cash unless a change of vehicle is absolutely necessary.
Good news could be around the corner, though, as new findings released by the Finance & Leasing Association (FLA) have shown that 83 per cent of survey respondents anticipate the retail new car finance market is set to grow.
What's more, 35 per cent of those questioned said they expect strong growth of between ten and 20 per cent.
The FLA Retail Motor Finance Confidence Survey indicates an optimistic outlook among car buyers, who appear to be encouraged by the strong performance of the motor finance industry over the past year and a half.
It was also shown that 95 per cent of those quizzed believe the used car finance market is on course for a period of growth, with 21 per cent of these forecasting this to be between ten per cent and 20 per cent.
As for the light commercial vehicle finance market, 53 per cent of those involved in the poll said they think growth is in the pipeline, with almost a quarter of these confident this growth will be greater than ten per cent.
The study asked respondents for any reasons why the industry's performance might be hindered in the months and years ahead – and a number of risk areas were identified.
It was suggested that business and consumer confidence could be dented should any weakening of the economic outlook be reported, while reservations were made regarding how consumer credit regulation will be transferred to the Financial Conduct Authority (FCA).
The FCA replaced the Financial Services Authority at the beginning of April this year – and there appears to be concerns that the new regime for consumer credit may not be proportionate.
According to the FLA, work between itself, the government and regulators will be ongoing to ensure this does not turn out to be the case, but there remain worries concerning timetable and transitional arrangements.
Paul Harrison, head of motor finance at the FLA, said: "The survey brings together the views of leading executives and it is quite clear that they want a new regulatory regime which does not harm competitiveness or the availability of credit for consumers.
"Even though the new regulatory regime comes into force on April 1st 2014, on the government's current timetable the final rules will only have been published the previous month.
"A sensible transition is needed to ensure the industry and the new regulator are ready for what will be the biggest upheaval in consumer credit regulation for a generation."
Should the transition run smoothly, the outlook will look increasingly rosy for those checking out new car deals who are worried about their ability to afford the vehicle they long for.
Growth of the retail new car finance market is music to the ears of automobile customers and could help you finally driving away in the car of your dreams.
Posted by Fred Mason