Car finance boom predicted post-lockdown
New research is predicting an auto finance boom as lockdown eases and pent-up demand for big ticket purchases is released.
According to Zopa’s data, the total amount of car finance lent by the neobank has increased 50% from February 2020 as people have been able to save through the lockdown and feel more able to commit to the monthly payments.
Government advice around avoiding public transport may also be playing a part, as people reconsider how they travel. Recent data revealed levels of car use returned to normal between lockdowns, while train travel peaked at around 40% of pre-Covid levels.
Tim Waterman, chief commercial officer at Zopa, said: “At the start of the pandemic, people were cautious about spending as many predicted some personal financial shocks. For those who were able to save, there’s a sense of financial security, which is now giving them the confidence to spend. As lockdown begins to ease, the handbrake is coming off and a new car appears to be high on the shopping list.
“Zopa’s car finance data suggests that consumers are feeling buoyant and optimistic and ready to kickstart their plans for the future.”
