Zero per cent rate sees huge increase as customers seek extended payment methods

Retail finance up 26 per cent in 2008

Retail finance use has jumped by a massive 26 per cent through 2008 when compared to the prior year.

The ACT has highlighted how the zero per cent interest rate has grown in popularity steadily since 2005. The Black Horse figures are as follows:

Year Bikes sold total sales value Average finance advance
2008 8541 £7,518,364 £880
2007 6265 £5,475,280 £874
2006 5402 £4,503,276 £834
2005 4224 £3,456,884 £818

Cycle retailers benefited from offering finance facilites, not just by guaranteeing a slae, but by upping the final value of the transaction.

Steve Baskerville from Real Cycles in Belfast said that: "Retail finance represented 22 per cent of sales turnover in 2008."

Over 300 ACT / ActSmart members take advantage of the preferential retail finance package offered through the partnership with Black Horse.

Interest free credit
• Interest free credit remained the most popular finance option in 2008 accounting for 91.6 per cent of all sales.
• Once again 12 months interest free was most popular accounting for more than 40 per cent of all interest free sales.
• The average advance on bikes sold using 12 months interest free credit was £798.
• Use of 24 months interest free increased to 19 per cent of finance sales with the highest average advance per sale of £1419.

• June was the single biggest month for finance sales during 2008, accounting for 1080 bike sales worth £917,986 with an average advance value of £850. This was an increase of 33 per cent in comparison to June 2007.
• The biggest month in 2007 was April.

Tim Baker from Black Horse commented: “As the economic conditions deteriorated over the course of 2008, having an attractive finance offer was paramount in being able to convert enquiries into sales.

As many mortgage payments fall with the reduction in base rates, many consumers will be looking at using this disposable income to make purchases. Therefore there has never been a better time to promote interest free, allowing customers to get the bikes and accessories they want quickly and easily.”

For details of the Black Horse package available exclusively to ACT / ActSmart members visit: or call 08704 288 404

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