New figures released by the Finance & Leasing Association (FLA) show that point of sale (POS) consumer car finance new business volumes fell by 3% in May compared with the same month in the previous year.  The value of new business fell by 1% over the same period.

New business in the POS consumer new car finance market fell 1% by value and 4% by volume in May, compared with the same month in 2018. The percentage of private new car sales financed by FLA members through the POS held steady at 91.0% in the twelve months to May 2019.

The value of POS consumer used car finance new business in May was a similar level to the same month in 2018, while new business volumes fell by 3%.

Geraldine Kilkelly, Head of Research and Chief Economist, said “The POS consumer car finance market reported new business volumes of almost 1.1 million in the first five months of 2019, only 1% lower than in the same period in 2018.”

“We continue to expect broadly stable new business volumes in 2019 as a whole.  Consumer confidence about their own personal finances remains relatively strong, supported by a resilient labour market and low interest rate environment.”

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

May 2019

% change on prev. year

3 months to May 2019

% change on prev. year

12 months to May 2019

% change on prev. year

New cars
Value of advances (£m)

1,591

-1

6,494

-3

19,362

0

Number of cars

74,762

-4

311,710

-5

944,785

-3

Used cars
Value of advances (£m)

1,563

0

4,822

+4

17,968

+8

Number of cars

128,712

-3

393,417

+1

1,467,835

+3

Total cars
Value of advances (£m)

3,154

-1

11,316

0

37,330

+4

Number of cars

203,474

-3

705,127

-2

2,412,620

+1

 

Table 2: Cars bought on finance by businesses
New business

May 2019

% change on prev. year

3 months to May 2019

% change on prev. year

12 months to May 2019

% change on prev. year

New cars
Number of cars

39,135

-2

126,309

-3

397,772

-10

Used cars
Number of cars

4,426

+13

15,207

-3

60,384

+4