New figures released by the Finance & Leasing Association (FLA) show that point of sale (POS) consumer new car finance business volumes fell by 7% in July, compared with the same month in 2016, while the value of new business was up by 3% over the same period.

The percentage of private new car sales financed by FLA members through the POS held steady at 86.0% in the twelve months to July. The POS consumer used car finance market reported new business in July up 17% by value and 10% by volume, compared with the same month in 2016.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “The fall in consumer new car finance business volumes is consistent with recent trends in private new car registrations, and FLA members’ penetration of this market remains stable.”

“July saw modest new business growth in the consumer car finance market overall. While the recently announced scrappage schemes may provide some boost to private new car sales in the coming months, the industry expects POS consumer car finance new business volumes to be broadly stable in 2017 overall.”

Table 1: Cars bought on finance by consumers through dealerships
New business

July  2017

% change on prev. year

3 months to July  2017

% change on prev. year

12 months to July  2017

% change on prev. year

New cars
Value of advances (£m)

1,209

+3

4,109

+1

18,341

+5

Number of cars

64,127

-7

214,929

-9

1,006,136

-3

Used cars
Value of advances (£m)

1,294

+17

3,904

+14

14,473

+11

Number of cars

114,371

+10

343,646

+8

1,299,090

+7

 

Table 2: Cars bought on finance by businesses
New business

July  2017

% change on prev. year

3 months to July  2017

% change on prev. year

12 months to July  2017

% change on prev. year

New cars
Number of cars

47,900

-2

145,586

+7

512,814

0

Used cars
Number of cars

7,242

+60

15,231

+11

57,074

+36