Used car market ‘recession-proof’
07 December 2022
The UK’s used car market is “recession-proof” despite official figures indicating volumes and prices are in decline. Finance broker CarFinance247 says its Q3 volumes were up 10%. Going into a downturn, people who would have paid cash, said co-founder Louis Rix, are deciding to finance to “keep a little bit of a wall around me”.
Rising base rates mean even prime customers are paying 9.9% and 10.9%. “Gone are the days of 6s and 7.9%.” Lenders have also tightened up affordability checks but Rix said acceptance rates remain around 60%.
Open banking is also helping improve affordability checks. “Within two clicks from a text that [a customer] receives from us, we can gather two years of bank history and lenders are taking that on board.”
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