Consumer car finance falls by 3%

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell by 3% in October 2023 compared with the same month in 2022. The corresponding value of new business was 2% lower over the same period.  In the ten months to October 2023, new business volumes remained 6% lower than in the same period in 2022.

The consumer new car finance market reported new business up 1% by value but 2% lower by volume in October compared with the same month in 2022.  In the ten months to October 2023, new business volumes in this market remained 5% lower than in the same period in 2022.

The consumer used car finance market reported a fall in new business in October of 5% by value and 4% by volume compared with the same month in 2022.  In the ten months to October 2023, new business volumes in this market were 6% lower than in the same period in 2022.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The consumer car finance market remains remarkably resilient despite the subdued economic outlook, with the value of new business expected to be only 4% lower in 2023 than in 2022.”

“FLA’s latest research also suggests that the value of consumer car finance new business in 2024 is expected to grow by 2% to £40.1 billion. The value of new business provided to consumers for new car purchases is forecast to grow by 9% in 2024 to £18.9 billion, while consumer used car finance new business by value is expected to fall by 4% in 2024 to £21.2 billion.”