Credit, Collections & Insolvency News
New figures released by the Finance & Leasing Association (FLA) show that new business volumes in the consumer car finance market grew in December 2019 by 6% compared with the same month in 2018, and held steady in 2019 as a whole at over 2.4 million cars.
The consumer new car finance market reported growth in new business volumes of 4% in December 2019 compared with the same month in 2018. In 2019 as a whole, new business volumes in this market fell by 3%. The percentage of private new car sales financed by FLA members was 91.7% in the twelve months to December 2019.
The consumer used car finance market reported new business volumes up in December 2019 by 7% compared with the same month in 2018. In 2019 as a whole, new business volumes in this market grew by 2%.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The performance of the consumer car finance market in 2019 was in line with expectations. A similar performance of broadly stable new business volumes overall in 2020 is likely if we see a pick-up in consumer confidence.”
“FLA members continued to set new records in 2019, with the penetration rate of consumer new car finance reaching 91.7%, and a record level of new business volumes of almost 1.5 million cars reported by the consumer used car finance market.”
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business |
Dec 2019 |
% change on prev. year |
3 months to Dec 2019 |
% change on prev. year |
12 months to Dec 2019 |
% change on prev. year |
| New cars | ||||||
| Value of advances (£m) |
1,313 |
15 |
4,123 |
2 |
19,638 |
1 |
| Number of cars |
55,720 |
4 |
184,518 |
-5 |
933,417 |
-3 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,177 |
11 |
4,148 |
4 |
18,374 |
4 |
| Number of cars |
90,956 |
7 |
330,058 |
2 |
1,489,929 |
2 |
| Total cars | ||||||
| Value of advances (£m) |
2,490 |
13 |
8,271 |
3 |
38,013 |
3 |
| Number of cars |
146,676 |
6 |
514,576 |
-1 |
2,423,346 |
0 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business |
Dec 2019 |
% change on prev. year |
3 months to Dec 2019 |
% change on prev. year |
12 months to Dec 2019 |
% change on prev. year |
| New cars | ||||||
| Number of cars |
31,361 |
0 |
96,865 |
-2 |
428,322 |
-3 |
| Used cars | ||||||
| Number of cars |
2,999 |
0 |
11,009 |
-31 |
54,999 |
6 |