Car Finance Acceptance Rates Rising

Recent stats published from car finance specialists Creditplus.co.uk, show that both application and acceptance rates have increased this year. Acceptance rates are up by 58% year on year for consumers applying for finance. Poole, United Kingdom, March 13, 2012 --(PR.com)-- Despite the economic uncertainties that faced the UK at the end of 2011 and the beginning of 2012, it seems that UK consumers have not been put off applying for car finance. Recent stats published from car finance specialists Creditplus.co.uk, show that both application and acceptance rates have increased this year. Acceptance rates are up by 58% year on year for consumers applying for finance. This is great news for the automotive industry which was hit hard by the recent recession. With funds slowly becoming easier to obtain for consumers, the number of new and used cars sold will increase. The rise in applications and acceptances over the last 12 months has also led to a small increase in the average amount borrowed to finance a vehicle, which now sits at 7,714, 10% higher than the previous year's figure. In a year when fuel prices look set to reach record levels, with diesel already averaging around 1.43 per litre and petrol prices reaching 66.75 per 50 litre tank, consumers are finally receiving some positive motoring news. Although in February 2012 the average car owner is set to spend a massive 18.33 per day on running their vehicle, it seems that in the UK motorists are happy to prioritise their spending, with their car being at the top of the priorities list. Shaun Armstrong, Managing Director of Creditplus commented, With an increase in the number of applications over the last year, its clear to see that there is more confidence in the consumer market. We have also seen a massive increase in the number of these applications that are being accepted. The signs clearly show that both consumers and lenders are becoming more confident again about borrowing and lending money. Although we have seen an increase in car finance acceptances, the lenders are still very particular about the type of consumers they want to lend to. We are fairly sure we will never see the sort of lending that was happening pre recession. It seems that the UK is starting to reign in their spending and reduce the amount they borrow. The total amount of unsecured consumer credit owed decreased by 9 billion between December 2010 and December 2011. This is likely to be due to the increased awareness of consumers to reduce their debt levels, combined with the fact that lenders criteria's is now stricter. Although the latest trends in car finance acceptance rates is a positive shift, it is clear the UK still has a long way to go to clear their debt problems. The average household still owes 7,948 excluding their mortgage, which is a substantial amount. Although consumers are becoming more aware of the economic issues and the debt they owe, there is still a need for lenders to ensure they do not lend irresponsibly. This is a lesson that has been clearly learnt from the recession. The positive news is that the future is looking
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Contact Information: Creditplus.co.uk Mark Humphrys 08717 502 495 Contact via Email http://www.creditplus.co.uk

Online Version of Press Release: You can read the online version of this press release at: http://www.pr.com/press-release/397525

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