New figures released by the Finance & Leasing Association (FLA) show that point of sale (POS) consumer car finance new business volumes grew by 5% in July, compared with the same month in 2018, while the value of new business increased by 6% over the same period.

The POS consumer new car finance market reported new business in July up 1% by volume and 4% by value, compared with the same month in 2018. The percentage of private new car sales financed by FLA members through the POS was 91.2% in the twelve months to July.

The POS consumer used car finance market reported new business in July up 7% by volume and 8% by value, compared with the same month in 2018.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “In July, the point of sale consumer car finance market reported growth for the first time since February 2019.  New business volumes in the first seven months of 2019 held steady compared with the same period in 2018.”

“The consumer used car finance market was the main driver of headline growth in July as new business volumes increased at their strongest rate since October 2018.”

Table 1: Cars bought on finance by consumers through the point of sale
New business

Jul 2019

% change on prev. year

3 months to Jul 2019

% change on prev. year

12 months to Jul 2019

% change on prev. year

New cars
Value of advances (£m)

1,432

+4

4,670

-1

19,347

-1

Number of cars

69,696

+1

223,734

-3

941,455

-4

Used cars
Value of advances (£m)

1,642

+8

4,672

+2

18,077

+7

Number of cars

134,464

+7

382,682

+1

1,474,684

+3

Total cars
Value of advances (£m)

3,074

+6

9,342

+1

37,424

+2

Number of cars

204,160

+5

606,416

-1

2,416,139

0

 

Table 2: Cars bought on finance by businesses
New business

Jul 2019

% change on prev. year

3 months to Jul 2019

% change on prev. year

12 months to Jul 2019

% change on prev. year

New cars
Number of cars

41,691

+11

116,146

0

399,179

-5

Used cars
Number of cars

3,985

+12

14,068

+13

61,481

+11