SPECIALIST sub-prime car dealer ACF Car Finance has reported its highest number of applications in the last 18 months.

The Chester-based firm says this reflects both a healthy market position and its own status as a leader in its sector.

ACF sells cars to people who can otherwise not access credit by arranging finance plans for them.

The firm recently lodged its 2008 accounts at Companies House which showed that although its sales had fallen slightly – down 5% to £38.6m – it had slashed its pre-tax losses from £4.5m to just £640,000.

Its gross profit margin increased from 10.8% to 15.1%, a result of “an increased focus on margins and a change in buying strategy”.

Norman Beaumont, sales and marketing director for ACF, said: “No company has remained unscathed throughout 2009 as the market has been so unsettled, but there are encouraging signs which improve the outlook for 2010.

“The trading environment has changed and competition within the market has decreased, and there is a definite increase in the numbers of customers in the sub-prime and near-prime marketplace.

“We have made a number of strategic business decisions in order to make the company more sustainable.

“By undergoing certain cost- saving initiatives and streamlining the business, the company is leaner than it has ever been before, putting us in a much stronger position within the market.”