Consumer car finance volumes increase by 3%

Figures released by the Finance & Leasing Association (FLA) show that new business in the point of sale (POS) consumer new car finance market grew 13% by value and 5% by volume in March, compared with the same month in 2016. In Q1 2017, new business was up 10% by value and 3% by volume, compared with the same quarter in 2016.

The percentage of private new car sales financed by FLA members through the POS was 86.5% in the twelve months to March, unchanged compared with the same period to February.

The POS consumer used car finance market also reported new business growth in March of 17% by value and 11% by volume, while in Q1 overall, new business was up 12% by value and 6% by volume.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “The first quarter of 2017 saw consumer car finance new business volumes increase in line with the industry’s expectations of single-digit growth for the year overall. The percentage of private new car sales financed by FLA members has remained steady at 86.5% since the beginning of 2017.”

Table 1: Cars bought on finance by consumers through dealerships
New business	Mar  2017	% change on prev. year	3 months to Mar  2017	% change on prev. year	12 months to Mar  2017	% change on prev. year
New cars
Value of advances (£m)	3,623	+13	5,516	+10	18,601	+9
Number of cars	194,348	+5	305,406	+3	1,054,802	+4
Used cars
Value of advances (£m)	1,408	+17	3,866	+12	13,965	+11
Number of cars	125,179	+11	348,059	+6	1,274,553	+8

 

Table 2: Cars bought on finance by businesses
New business	Mar  2017	% change on prev. year	3 months to Mar  2017	% change on prev. year	12 months to Mar  2017	% change on prev. year
New cars
Number of cars	58,201	-2	124,668	+1	506,398	-2
Used cars
Number of cars	4,671	+45	15,694	+73	53,474	+43