New figures released by the Finance & Leasing Association (FLA) show that new business in the point of sale (POS) consumer car finance market grew 4% by volume and 7% by value in September, compared with the same month in 2018.  In Q3 2019 as a whole, new business grew 3% by volume and 5% by value.

The value of new business in the POS consumer new car finance market grew by 5% in September compared with the same month in 2018, while new business volumes fell by 1% over the same period.

The percentage of private new car sales financed by FLA members through the POS was 91.1% in the twelve months to September 2019.

The POS consumer used car finance market reported new business in September up 12% by value and 9% by volume, compared with the same month in 2018. In Q3 2019 as a whole, new business increased 6% by value and 5% by volume compared with Q3 2018.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “In September, the POS consumer used car finance market reported its strongest growth since August 2018, which contributed to an increase in new business volumes of 5% in Q3 2019 as a whole.”

“The POS consumer car finance market overall reported stable new business volumes in the first nine months of 2019, in line with expectations.”

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

Sep 2019

% change on prev. year

3 months to Sep 2019

% change on prev. year

12 months to Sep 2019

% change on prev. year

New cars
Value of advances (£m)

2,642

+5

5,066

+4

19,481

+1

Number of cars

122,526

-1

241,984

0

939,634

-3

Used cars

Value of advances (£m)

1,641

+12

4,807

+6

18,237

+6

Number of cars

128,781

+9

388,742

+5

1,483,851

+2

Total cars
Value of advances (£m)

4,284

+7

9,873

+5

37,717

+3

Number of cars

251,307

+4

630,726

+3

2,423,485

0

 

Table 2: Cars bought on finance by businesses
New business

Sep 2019

% change on prev. year

3 months to Sep 2019

% change on prev. year

12 months to Sep 2019

% change on prev. year

New cars
Number of cars

26,658

-14

91,638

-3

392,096

-5

Used cars
Number of cars

4,231

+18

13,305

+19

63,180

+16