New figures released today by the Finance & Leasing Association (FLA) show that new business in the point of sale (POS) consumer new car finance market fell 1% by value and 13% by volume in May, compared with the same month in 2016. This is in line with the fall in private new car sales over the same period.

The percentage of private new car sales financed by FLA members through the POS was 86.2% in the twelve months to May, unchanged compared with the same period to April. The POS consumer used car finance market reported new business up 12% by value and 7% by volume in May, compared with the same month in 2016.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “Growth in the consumer car finance market has moderated in the first five months of 2017, with overall new business volumes flat compared with the same period last year.

“This is in contrast with average new business growth of 13% annually over the last five years.”

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

May  2017

% change on prev. year

3 months to May  2017

% change on prev. year

12 months to May  2017

% change on prev. year

New cars
Value of advances (£m)

1,365

-1

6,162

+2

18,300

+5

Number of cars

69,399

-13

325,181

-7

1,020,586

-1

Used cars
Value of advances (£m)

1,333

+12

3,945

+11

14,150

+10

Number of cars

117,242

+7

351,665

+6

1,281,220

+6

 

Table 2: Cars bought on finance by businesses
New business

May  2017

% change on prev. year

3 months to May  2017

% change on prev. year

12 months to May  2017

% change on prev. year

New cars
Number of cars

43,329

+9

149,202

-1

506,396

0

Used cars
Number of cars

2,995

-49

10,446

-14

50,340

+26