Lately, there’s been a boom in the popularity of car finance in the UK in the first half of 2022. New data has shown that the car finance industry has grown just over 40%, showing that the economy is well and truly bouncing back after the pandemic which ended lots of businesses. More companies are now offering CCJ car finance too, so no matter your situation, there could be a lender out there for you. Let’s explore deeper into the car finance market and how it’s grown in the UK.
What Is Car Finance?
Getting a car on finance is essentially taking out a loan, except you receive a car instead of money. You then make monthly payments back to the lender to pay off the loaned asset. Some lenders will allow you to add insurance to your chosen agreement as well, meaning you have even less to worry about. Depending on the type of finance you choose will also depend on what happens to the car at the end of your agreement. Some agreements mean that you get to keep the car, some let you return it, and some even let you upgrade. It all comes down to the company you choose for your finance.
Why Is It More Popular Than Ever?
Car finance has been around for a while now, but recently it’s seen a sudden spurt in popularity. This could be for a number of reasons, but here are the most likely ones.
Post Pandemic Recovery
The lockdowns during the pandemic affected numerous businesses, so with the UK attempting to return to something that resembles normal life, it’s expected that most businesses will see an increase in growth. More people are now able to visit the previously closed showrooms too, so the more people that visit, the more cars people will get on finance.
Similarly, during the lockdowns, most people were working from home and rarely used their cars. However, as we now move into a post-pandemic world and venture back out to the office, more people are noticing that their car could do with an upgrade. This realisation has hit many people who now find their daily commute a struggle in their older car and long for an easy journey. Opting for a new, comfortable car on finance is an easy way to achieve this and one of the many reasons why this industry has suddenly grown.
The pandemic meant that a lot of new driver’s lessons were stopped, so they never passed their test, and therefore couldn’t buy a car. However, as the lockdown restrictions have been lifted, lessons have resumed, and more people are now able to get their licenses. This means that with more first-time drivers on the road, there’s now an influx of people looking to get their first vehicle, and finance can be a great option for them.
Ease Of Online Application
A lot of car finance companies are also online and offer a very quick and easy application form. During the pandemic, lots of businesses made the move to provide their services online, so the public has become more used to this way of life. This means that if a car finance company wishes to expand its customer list, providing a simple online application form and digital catalogue of cars is the best way to go. Some people may still be wary about heading outside for unnecessary trips, so again moving the process online has allowed these people to access car finance.
The way that the car finance industry is going, it’s expected to only increase more throughout 2022 as it offers the chance to drive your dream car without having to pay for it outright. With digital technology continuously growing as well, it can be anticipated that more online applications will become available, thus growing the industry even further.