12-Plate Registration Not Proving Enticing To Luxury Car Buyers

The release of a new UK registration plate used to be a momentous occasion. Based on information from Bridford, a UK car finance company, this no longer seems to be the case. Anticipation prior to 12-plate registration has not been as high as expected. Luxury car buyers seem disinterested, preferring to drive the latest vehicle models as soon as they hit the showroom floor.

Tim Marlow, owner of Bridford, commented that the demand and excitement surrounding a new registration plate has subsided in recent years. The number of flexible and attractively priced car finance packages may be to blame. Mr. Marlow reported that since car loans and other financing options have made it easier to change vehicles more regularly, car buyers want to drive a new model as soon as it is released.

In general, interest in the latest plates has waned since the process of two new registrations per year was introduced, reported Mr. Marlow. Car buyers prefer not to wait until March 1 to drive a vehicle that becomes available in January. Now, drivers look forward to international auto shows because these reveal when the newest models will become available.

In the past, Bridford customers used to change vehicles each year to have the prestige of driving an automobile each August featuring the most recent registration plate. Since a new registration is now available every six months, having the latest plate is no longer as important. The exclusivity that the plate once conveyed is no longer there.

Instead, drivers now circle the dates of the Beijing, Frankfurt, and Geneva auto shows. These events reveal release dates of the latest cars, allowing buyers to place orders and secure car finance. Mr. Marlow reported a surge in activity last fall following the Frankfurt show. He anticipates that business will increase again after the Geneva show later this month.

Car Finance From Dealers Continues To Grow

According to the latest figures from the Finance & Leasing Association (FLA), dealer car finance is still the most popular option for new car buyers.

Between January and November 2011, 61.5 percent of new car buyers used dealer vehicle financing. This was nearly a ten percent increase from the 2010 figure.

Dealer financing resulted in a six percent increase in number of new vehicles and four percent increase in number of used cars purchased year-over-year during November.

FLA head of motor Finance Paul Harrison commented that these figures reveal how important dealer-provided financing is for new and used car buyers.

He attributed the popularity of this option to the “range and flexibility of the products.” Providers are able to offer excellent deals on car loans and leases due to the secured aspect of this financing.

Despite this positive trend, not all car buyers qualify for dealer financing. Those with the most impaired credit usually must look elsewhere.

For them, lenders specializing in bad credit car finance are often the best choice. They often must pay higher interest rates for these car loans. However, repayment according to financing terms is a way to improve the credit score.

Drivers with poor credit history should comparison shop for the lowest rate loan available. Rates may vary based on loan amount and repayment period.

If credit is questionable, the individual is usually required to make a down payment. Car buyers who are able to make a sizable one may find more attractive financing deals.

How the car finance industry fares during 2012 will hinge on consumer confidence, said Mr. Harrison. According to market experts, finance rates are the lowest they have been in years, increasing the chance that car buyers will find a good deal.

New car models are more reliable and efficient, enticing many drivers to upgrade their vehicles.

Car Finance Lender Excelling With Customer Service

There are many places to receive car finance in the UK and the Internet is one of them. Online vehicle financing company Carloan4u was established in 2006 and continues to excel due to its experienced staff and outstanding customer service.

The team strives to make the financing process simple, not a chore, and this shows in its customer reviews on third party sites.

Customers stay at home and apply for car loans online when using this lender. The company boasts a high acceptance rate, even for people with bad credit.

Car finance rates start at just 7.9 percent APR and no fees or deposits are necessary. Consumers receive a quick response to their car loan application and a personal loan advisor to answer questions and guide them in the right direction.

Once car finance has been approved, the consumer may purchase a vehicle from any UK dealer. Carloan4U will recommend dealers upon request from consumers.

This service saves time and customers seem to appreciate it. The company has received more than 403 reviews, with 90.8 percent of customers stating that they would recommend the company’s services to someone else.

The number of reviews for this company exceeds competitors by over 200. Carloan4U customers seem to be excited enough about their experience to want to tell others.

The company has a 4.6 out of five star rating in terms of service. Carloan4U director Ryan Dignan stated that the company continues to adapt to ensure that the vehicle financing process is simple.

Many companies claim to put the customer first, but not all do. This one offers services even after the vehicle purchase. The Guaranteed Auto Protection insurance it provides protects car owners with outstanding balances on their car loans.

If the vehicle is stolen or involved in a serious accident, the covered owner avoids huge monetary loss.

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Car Finance Sales Are Increasing Thanks To Excellent Customer Service In UK

In October, car finance sales for new private vehicles increased by six percent year-over-year, according to the Finance and Leasing Association (FLA). Financing increased by ten percent during the past three months, compared to 2010. Providers of financing are navigating this difficult economy by offering affordable options like personal contract purchase pcp.

The Specialist Automotive Finance (SAF) program is helping dealers to improve the quality of information provided regarding car loans and other financing options. Since its launch in 2007, more than 25,000 people from over 1,000 businesses have taken the online SAF Competence Test.

This annual free test is designed to improve industry standards and dealer staff knowledge regarding vehicle finance. Those who pass the test are given a Certificate of SAF Competence and considered SAF Experts.

More than 1,500 dealerships have earned SAF Approved status, which occurs when all customer service employees pass the SAF Competence Test. Included in this list are 24 of the top 30 dealer groups in the UK. Thus far in 2011, approximately one-half of new autos have been sold by an SAF Approved dealership.

Knowledgeable dealer employees are providing car buyers with the information they need to purchase and finance a new vehicle.

FLA Head of Motor Finance Paul Harrison commented on the ability of vehicle finance sales to remain strong despite tough economic conditions. He attributes it to excellent customer services and good forecourt deals. Dealer customer service employees are using their increased knowledge of financing to help car buyers identify the best option.

The FLA hopes that the SAF will continue to increase customer confidence in car finance. Car buyers should view dealers as knowledge sources rather than places filled with pushy salespeople. With vehicles becoming larger investments every year, it is important for consumers to feel comfortable before committing their money to a purchase.

Reasons To Purchase A New Car Versus A Used One

With the holidays approaching, many people are considering buying a car for a loved one or themselves. An automobile makes an excellent gift but buying one requires making many decisions. One of the biggest is whether to purchase a new or used vehicle. According to industry experts, new vehicles are recommended over their used counterparts, for several reasons.

Auto manufacturers are engaged in heavy competition for business. Terms for car loans and personal contract purchase pcp agreements are currently extremely attractive. Zero percent car finance, rebates, and credits are available. In general, new car finance terms are usually better than those for used vehicles. Holiday car shoppers can get quite a deal on a shiny, new car.

New cars also have safety on their side. They are equipped with the latest safety features like ABS brakes, multiple airbags, and durable body frames. In addition, they have higher fuel efficiency than older cars, reducing operation expenses. Oh, and do not forget all the bells and whistles included with new cars such as GPS navigation, satellite radio, and advanced electronic diagnostic systems.

The standard warranty for a new car is the earlier of three years or a minimum of 60,000 km. Some automakers offer warranties of four or five years and at least 100,000 km. Warranty periods of these lengths are not offered with used cars, unless an extended warranty is purchased. Having a long warranty provides new car owners with peace of mind and ensures a reliable experience.

New cars are lasting longer than ever before, providing drivers with more value. In addition, maintenance costs are lower during the first three years of a car’s life. This selling feature is particularly relevant during current economic times. New vehicle owners are confident they will not face the high repair bills that could come with a used car.

Irish Business Owners Should Not Be Deterred By Banks For Vehicle Finance

As the credit crunch continues, banks in Ireland are saying “no” much more frequently. This is even more problematic for businesses than for consumers. Though the government hopes the Irish economy will recover by mid-2013, a looming implosion of the eurozone is making that unlikely. When businesses hit a brick wall with banks, they should explore other avenues.

Many businesses require trucks to transport their products. However, banks are not providing car loans as easily as they once did. Approaching an asset finance company for an equipment loan may have a more positive outcome. Loans are available for new or used equipment and feature five-year terms. The equipment serves as security for loan repayment when using asset finance companies like Close Brothers Commercial Finance.

According to Adrian Madden, Close Brothers regional sales director, the interest rate for this equipment finance depends on the strength of the business and the deposit amount. The strength of the security for the loan also plays a role. If the money is being used as truck or car finance, the interest rate is usually less that it would be for specialized equipment.

Equity release loans are also offered by Close Brothers. This allows business owners to get financing for their businesses based on the value of specific assets owned by the company. If the business is trying to expand its fleet of trucks, those already in its possession may count toward the business equity, making it easier to get the desired funds.

Some businesses may qualify for an SME loan for car finance through the financial institution AIB. This funding carries a 4.4 percent interest rate. Non-qualifying businesses can expect to pay between six and seven percent interest. Going through a fleet management company or commercial car finance arm of a dealer could be even less expensive than this.

Even Customers With Bad Credit Entitled To Back End Products

Qualifying only for bad credit car finance does not exempt you from getting services or products on the back end of the sale. Negotiations are not finished once the vehicle purchasing decision is made. Consumers should be aware of the back end products that dealers may offer. They can then determine if these are worth the money.

An extended warranty is considered good because it can be a money-saver. This product is really an extended service contract. If the car finance agreement is not as long as the new vehicle warranty, it can be beneficial. An extended warranty is even more attractive for a driver on a restricted budget purchasing a used car that comes with a very short or no warranty. However, no lender requires this product, no matter what the dealer says.

Gap insurance covers the difference between the car finance balance and the current value of the car. It is applicable when vehicles are totaled or stolen before their car loans have been repaid. Drivers with car finance terms longer than 36 months or who make a relatively small deposit should consider this product.

Dealers charge a documentation fee to cover their clerical costs for preparing vehicle sales paperwork. This fee is subject to negotiation and in some states, dealers are limited in the amount they may charge. A local DMV office can provide more information regarding the regulations in your state. Request to have the fee lowered or removed, when necessary.

A separate vehicle preparation fee is a waste of money and should be credited. This fee is already included in the manufacturer suggested retail price for the car so it should not be charged separately. Vehicle VIN Window etching should also be passed on because it can cost over $350. Drivers can do it themselves at a much lower price.

Company Refutes Myths Regarding Bad Credit And Car Ownership

MSG Cars, a UK company specializing in bad credit car finance, has had it with prime lenders. Many of these entities have brainwashed car buyers with poor credit into believing that they will never qualify for car loans, it says. UK residents need to drive and the company believes that those with bad credit deserve an equal chance at car ownership.

Even during a well-performing economy, some people are burdened with debt. The slow financial growth of UK households has made this situation worse. Mainstream lenders turn these individuals away when the goal is to obtain a car loan.

This leaves it up to companies like MSG Cars to reeducate consumers and then provide the help needed. The truth is that the credit-impaired can not only obtain car finance but they can secure an arrangement with a reasonable rate.

MSG Cars is one of the independent finance brokerages that cater to individuals who dealerships, finance companies, and other mainstream lenders have declined. Many of these people believe that a prime lender is the only alternative. By educating consumers regarding other options, the company can help them discover the best approach.

Visitors to the MSG Cars Web site receive a detailed explanation of their options and the process of applying for bad credit car finance. Those who are interested can complete an online application form. An instant response is provided by a non prime financing company and once MSG has approved the offer, a consultant informs the applicant of the lending limit and monthly payments.

With this out of the way, the consultant works with the car buyer to find the correct vehicle. After confirming the deposit and payments, the buyer receives the loan documents via email. In addition to the primary funding source, MSG Cars offers 12-month contract hire programs and longer contracts for leased vehicles.

Car Finance Market Hits High In The UK

In August, car finance reached a four-year high in terms of market share in the private new car sales sector. The Finance & Leasing Association (FLA) announced that 57.9 percent of people purchasing new cars in the last 12 months used forecourt finance. This included personal contract purchase pcp, other hire purchase arrangements, and leasing.

Compared with August 2010, there was a 17 percent increase in the number of new vehicles purchased using auto financing. For used cars, the increase was 8 percent. Recent trends in sales continued in the new vehicle market, with leasing experiencing a 38 percent increase and personal contract purchase pcp being 24 percent more popular compared to just one year ago. Within the used car market, car buyers also turned to these forms of credit more frequently.

FLA head of motor finance Paul Harrison commented that the figures do not lie in terms of the popularity of forecourt finance. He believes that motor finance offers an advantage over other purchasing methods during an economy like the current one. Customers have the ability to negotiate financing packages that fit their budget.

For individuals with bad credit, car finance options may be restricted. However, many will qualify to lease or enter a hire purchase arrangement. By making payments on time, they help their credit scores improve, making it possible to qualify for low-interest car loans in the future. Now is a great time to improve credit history because interest rates should be low for a while.

Despite gloomy news in other areas of the economy, vehicle financing seems to be shining. Few UK residents have enough money saved to purchase a car outright, making car loans and forecourt financing more popular. As prices continue to rise and paychecks stay steady, vehicle financing should continue to enjoy the spotlight.