Consumer car finance new business falls by 6%

New figures released by the Finance & Leasing Association (FLA) have shown that consumer car finance new business volumes fell in July 2023 by 6% compared with the same month in 2022. The corresponding value of new business fell by 5% over the same period.  In the seven months to July 2023, new business also decreased 5% by value and 6% by volume compared with the same period in 2022.

The consumer new car finance market reported a fall in new business of 2% by value and 4% by volume in July compared with the same month in 2022.  In the seven months to July 2023, new business volumes in this market remained 6% lower than in the same period in 2022.

The consumer used car finance market reported a fall in new business in July of 8% by value and 6% by volume compared with the same month in 2022.  In the seven months to July 2023, new business volumes in this market remained 5% lower than in the same period in 2022.

 Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The consumer car finance market reported a modest fall in new business in July, in line with the performance of the market so far this year and reflecting more cautious consumer sentiment given the higher interest rate environment. ”

“FLA’s latest research suggests that the value of consumer car finance new business in 2023 is likely to be only 2.5% lower than in 2022 at £39.8 billion. The value of new business provided to consumers for new car purchases is expected to grow by 2.1% in 2023 to £17.5 billion, while consumer used car finance new business by value is forecast to fall by 5.7% in 2023 to £22.3 billion.”