Zuto has increased its market share by 7% in the last year, outperforming the used car market which grew by 6% in the same period.
The car finance marketplace has also had a great start to Q4, with record growth. It achieved 40% year on year revenue growth in October, despite the seasonal downturn that often impacts the car finance market in Q4.
Zuto said its strong performance has been driven by improving customer experience and integrating more lenders and products into the platform.
James Wilkinson, CEO at Zuto said: “We are seeing incredibly strong trading performance, despite a challenging macro-economic environment. Seasonally, the used car market typically experiences a slight downturn from October so we are delighted to be bucking the trend, particularly when there are so many other external factors at play.
“Beyond the numbers, we remain focused on changing our industry for the better while proving it is possible to combine profit with purpose. We’re doing that by providing transparency to customers and making sure our people have the best possible experience at work.”
The Manchester-based fintech firm, which evolved from Car Loan 4U, outlined plans to recruit 150 new team members in May this year, following a period of rapid growth.
2022 also marked the year Zuto achieved B Corp certification and a number of industry accolades, including featuring in the Tech Nation Future 50 and winning the Best Workplace award at the Prolific North Tech Awards 2022. Wilkinson was also accepted into the Automotive 30% Club.
Finance debt for new and used cars has risen to £40 billion per year, prompting concerns that consumers may default on agreements amid soaring living costs.
Analysis by The Car Expert shows that UK car finance debt has increased by £29bn since 2009.
Almost all (circa 92%) new cars are purchased using finance agreements, along with a growing number of used cars, meaning hundreds of thousands of owners could be at risk of defaulting on their debts.
The Car Expert found that the average amount financed per new car has more than doubled, increasing from just under £12,000 at the start of 2009 to more than £25,000 by the end of June 2022.