Confident consumers give UK retail sales a boost
Posted on in Business News , Cycles News , Outdoor News
Consumer spending has been the main drive behind the UK economic recovery as levels of debt have been rising alongside improving levels of consumer confidence.
Household spending has grown at the strongest pace since November's Black Friday, as the Easter break and a couple of weeks of sun prompted people to splash out on non-essential purchases.
Low rates and low inflation have been boosting consumer spending, which rose 2% in April compared to the same month last year, according to the latest Visa Expenditure index.
Recent figures have also shown that families took on more debt in the past month than they have at any other time since 2008, with households owing an average of £6,300 each - excluding mortgage debt.
This demand for more credit comes off the back of falling unemployment and wages slowly starting to rise, hence the rise in consumer confidence.
The trend for borrowing more credit will be welcomed by the bike trade after it was reported that the desire for high-end bikes has seen more people seeking to borrow cash to finance a new bike. If consumer confidence continues to grow this should see high-end financed bike sales performing well over the summer.
Start offering finance today!
There are currently over 800 retailers offering finance through ActSmart's retail finance scheme, accounting for £60m of new sales every year!
If you aren't currently offering finance, you are missing out on the growing number of consumers wanting to purchase high-end bikes. With over 800 retailers offering the service, your customers could soon find their way to competitors who do offer the finance options they're looking for.
Ride it away is available to any cycle's business who will benefit from:
Free V12 set-up worth £495- Personal support throughout the application and FCA authorisation process
- No minimum finance turnover requirement
- Payment issued by V12 same day and in your bank within 4 days
- National promotion on the Ride it away and Take it outdoors consumer websites
- Access to FCA compliant POS material
- Access to web banners for use on your own website
Click here for more information about the Ride it away scheme
Get started for free
The FCA announced on 18th March that retailers offering limited retail finance options are no longer required to be authorised by the FCA. Retailers who offer 0% (interest free) finance up to 12 months will no longer have to be authorized and regulated by the FCA, or be liable for the annual fees and charges involved with being regulated.
However, whilst retailers no longer need FCA authorisation to offer the basic 0% option, ActSmart and V12 have created a wide range of product options which enable retailers to offer their customers different APRs and protect their margin. In order to fully utilise all the product options available you will still require FCA authorisation, which costs just £100.
With more customers feeling confident in their ability to pay back their loans, the interest bearing options are just as popular with consumers as the 0% options.
What next?
Click here to find out more and request your free application pack or contact us on 0845 618 7256