New figures released by the Finance & Leasing Association (FLA) show that new business in the point of sale (POS) consumer car finance market grew 1% by volume and 4% by value in December 2018, compared with the same month in 2017.

The POS consumer new car finance market reported new business volumes in December 4% lower than in the same month in 2017, while the value of new business held steady.

The percentage of private new car sales financed by FLA members through the POS was 91.2% in the twelve months to December 2018, unchanged compared with the year to November.

The POS consumer used car finance market reported new business growth in December of 5% by volume and 9% by value compared with the same month in 2017.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The POS consumer car finance market grew in 2018 in line with expectations, with new business volumes 3% higher than in 2017.”

“The market is likely to report stable new business volumes in 2019 as a whole if there is a reduction in the current uncertainty about the economic outlook.”

Table 1: Cars bought on finance by consumers through dealerships
New business

Dec 2018

% change on prev. year

3 months to Dec 2018

% change on prev. year

12 months to Dec 2018

% change on prev. year

New cars
Value of advances (£m)

1,135

0

4,028

+2

19,384

+3

Number of cars

53,439

-4

193,352

-1

959,729

-3

Used cars
Value of advances (£m)

1,060

+9

4,005

+10

17,571

+13

Number of cars

84,907

+5

323,543

+5

1,459,136

+7

Total cars
Value of advances (£m)

2,195

+4

8,032

+6

36,955

+7

Number of cars

138,346

+1

516,895

+2

2,418,865

+3

 

Table 2: Cars bought on finance by businesses
New business

Dec 2018

% change on prev. year

3 months to Dec 2018

% change on prev. year

12 months to Dec 2018

% change on prev. year

New cars
Number of cars

26,600

-2

85,093

-15

396,767

-12

Used cars
Number of cars

3,060

-9

17,745

+21

59,885

+6