Consumer car finance new business volumes increase by 3%

New figures released by the Finance & Leasing Association (FLA) show that point of sale (POS) consumer new car finance business volumes grew by 1% in June, compared with the same month in 2017, while the value of new business was up by 9%.

The percentage of private new car sales financed by FLA members through the POS was 89.5% in the twelve months to June.

In the POS consumer used car finance market, new business was up 4% by volume and 11% by value in June, compared with the same month in 2017.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The point of sale consumer car finance market reported new business volumes up in the first half of 2018 by 4% compared with the same period in 2017.  This was in line with expectations, with a modest fall in consumer new car finance volumes offset by single-digit new business growth in the consumer used car finance market.”

Table 1: Cars bought on finance by consumers through dealerships
New business	Jun 2018	% change on prev. year	3 months to Jun 2018	% change on prev. year	12 months to Jun 2018	% change on prev. year
New cars
Value of advances (£m)	1,717	+9	4,962	+18	19,479	+4
Number of cars	83,470	+1	243,495	+12	978,713	-6
Used cars
Value of advances (£m)	1,460	+11	4,562	+16	16,528	+13
Number of cars	119,903	+4	383,302	+10	1,412,991	+7
Total cars
Value of advances (£m)	3,176	+10	9,524	+17	36,007	+8
Number of cars	203,373	+3	626,797	+11	2,391,704	+2

 

Table 2: Cars bought on finance by businesses
New business	Jun 2018	% change on prev. year	3 months to Jun 2018	% change on prev. year	12 months to Jun 2018	% change on prev. year
New cars
Number of cars	40,691	-22	126,092	-6	449,903	-7
Used cars
Number of cars	5,087	-4	13,615	+17	63,428	+11