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BVRLA: Car finance could improve in 2011

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Vehicle finance for approved used cars could be set to improve, with banks expected to start bringing in extra funding to assist the sector.

The British Vehicle Rental and Leasing Association (BVRLA) predicts that this year will see lenders focusing on vehicle rental and leasing in particular, in recognition of the industry's excellent returns and low risk.

However, trade body chief executive John Lewis explained that vehicle credit will still be hard to come by in what may prove to be a challenging year for the approved used car sector and related industries.

He said: "The recovery we expect to continue this year will be a largely credit-less one, with smaller businesses in particular struggling to meet their borrowing requirements.

"Total car sales will continue to hover around the two million mark and may well fall short of last year’s level."

Early last month, figures published by the Finance and Leasing Association indicated that used car finance increased by seven per cent in value and 11 per cent in volume in October, compared to 12 months earlier.ADNFCR-2576-ID-800322562-ADNFCR

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