Consumer car finance deals, including PCP, rose in the first quarter of 2017, despite the Bank of England announcing that regulators would be investigating the practices involved in issuing the deals.
The increase in PCP deals outpaced the overall growth in the overall consumer finance segment. According to figures released by the FLA (Finance and Leasing Association), the new car finance market grew by 13% in value and 5% in volume year-on-year in March. Across the quarter, it was up by 10% and 3% in the same criteria compared with Q1 of 2016.
Used car finance rose as well, with even higher figures for value and volume - 17% and 11% respectively - contributing to the raise across the first quarter.
This growth comes despite an unstable February. Volume fell by 2% in the new car market while value increased by 2%, while in used car PCP a similar situation occurred, with volume stagnating with a 1% decline, and a 3% increase in value of new business.