A sudden drop in new vehicle sales is leading dealers to offer higher - risk finance deals to keep the market alive , Bank of England economists have disagreed . In an attempt to gain confidence , sales staff are being asked by manufacturers to offer larger discounts , but economists are warning that the car finance market would be highly vulnerable in the event of an economic downturn . Car finance is usually based on personal vehicle purchase deals that can allow customers to purchase a vehicle without even paying a deposit .
A sudden drop in new vehicle sales is leading dealers to offer higher-risk finance deals to keep the market alive, Bank of England economists have said. In an attempt to gain customers, sales staff are being asked by manufacturers to offer larger discounts, but economists are warning that the car finance market would be highly vulnerable in the event of an economic downturn. Car finance is usually based on personal contract purchase deals that can allow customers to buy a car without even paying a deposit.