The Finance and Leasing Association (FLA) offers handy information to help you navigate closed showrooms during lockdown, and beyond. Furthermore their website is well worth a look to help with any lingering lockdown car purchase confusion.
A quick look at their latest statistics reveal the FLA are forecasting a challenging outlook to 2021’s first quarter (1 January to 31 March). Due to ongoing pandemic restrictions and lockdown measures, closing car showrooms nationwide, new car finance declined by 24% last year. Not to mention the latest figures also show FLA members provided £30billion in new finance, and £62billion in new credit since the start of the pandemic in 2020. Therefore car dealerships have adapted in all sorts of ingenious ways to help you continue to access vehicles as normally as possible.
Due to the financial uncertainty surrounding the pandemic, applications for car payment holidays have been extended until 31 March 2021. Car payment holidays are arranged for up to six months, and are a formal arrangement with your HP finance provider.
Defaulting on your car payments is a serious issue, especially if you are committed to a HP finance contract. Because as we mentioned earlier, your car is used to secure the finance deal and if you default or cannot meet your payments, the car may be repossessed. Not to Mention, experts emphasise the importance of contacting your HP finance provider as soon as you are aware that you may experience difficulty in meeting your agreed monthly instalments.