UK Car Consumers

Financing Cars in the UK

A great majority of people that want to buy a vehicle in the UK, have to arrange some sort of financing. This is generally accepted as part of the economy. However, what has been noted is that there has been a significant increase in the amount of financial lending that has been taking place in regards to the purchases of autos. In fact, it has been determined that it is one of the most expedited types of growth in the consumer financial market, although other lending factors are going up as well, such as credit card lending and personal loans. This growth in the financing for vehicles is bringing some attention to the regulators.


One of the concerns that comes with borrowing for any type of commodity, is whether that particular item such as an automobile, will be classed as a permanent priority when it comes time to pay back the loan. Why this is considered important, is the fact that it is a secured loan where other types of loan financing is not.

Concerns of UK regulators of finance, are keeping a close eye on the increased growth in automobile lending. They are concerned that it is getting into an irresponsible framework in the industry that finances vehicles. The problem could arise that people that are given money to buy an automobile when they can’t afford it, end up running into dire financial problems. It can lead to bankruptcy, and other major losses for them. The financial regulators believe that there has to be some level of responsibility among lenders.

Personal Contract Plans

Where a lot of the growth is being noted, is in personal contract plans. What this means is that the vehicles are not being purchased, but they are being paid for the use of the vehicle over a period of time, which usually averages about three years.

Changes in Growth

When changes in growth in the financial market take place, attention has to be paid to determine what the actual reasons for doing so are. It has to bedetermined as to whether consumer are lacking the funds to buy vehicles. Or, is it the fact that the automobile industry is growing, and churning out more vehicles for purchase that are more tempting. Then again, is it a lackadaisical attitude that is being taken on by the borrowers? All of these are important factors to track so that it doesn’t end up having a dire consequence on the economy in the future.


Those that are going to borrow money for the purchase of a vehicle also have a level of responsibility that they need to accept. One should look at their finances carefully to ensure that they are going to be able to cover the payments, and that they have the ability to repay the loan. It also has to be looked at as to whether a new or used vehicle is necessary, or has the attitude been adopted that it’s just nice to have a second vehicle.