Auto finance deposits and monthly payments have been “very stable” over the last 12 months.
That’s iVendi’s view, which has identified this trend, even though the Bank of England’s continued interest rate hikes are pushing interest rates higher for used-car buyers.
A year ago, the average down payment for a used car was £2,859, with monthly payments of £292, according to new figures from iVendi.
The paper said today that the base rate has risen from 1.25% to 5% over the period, but remains largely unchanged at £2,932 and £304 respectively.
But James Tew, chief executive of car retail technology specialists, said it was notable that the average price of a vehicle purchased over the same period fell by £576 to £16,589. rice field.
“Last year we saw the increase in the Bank of England’s base rate pushing up the cost of auto finance, but given the prevailing economic conditions, it is unlikely to have an impact on consumer behavior. No way.
“What we found from these numbers is actually quite interesting. We choose lower priced cars to partially offset the cost of borrowing.
“This is a very powerful demonstration of how individuals can use online tools to arrive at an outcome that works for them, explore different motor finance options, and vary parameters to arrive at a personalized solution. It’s a great case study.”