Consumer car finance new business fell by 8% in March

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in March 2023 by 8% compared with the same month in 2022. The corresponding value of new business fell by 7% over the same period.  In Q1 2023, new business fell 6% by value and 5% by volume, compared with Q1 2022.

The consumer new car finance market reported a fall in new business of 5% by value in March compared with the same month in 2022, while new business volumes decreased by 7%.  In Q1 2023, new business volumes in this market were 7% lower than in Q1 2022.

The consumer used car finance market reported a fall in new business of 10% by value and 8% by volume in March compared with the same month in 2022.  In Q1 2023, new business volumes in this market were 4% lower than in Q1 2022.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The consumer car finance market ended the first quarter of 2023 with new business volumes only 5% lower than in Q1 2022 despite the challenges faced by households from the squeeze on real incomes from high inflation, and higher interest rates and taxes.”

Overall, FLA motor finance providers reported new business 2% up by value and 2% lower by volume in Q1 2023.  The business new car finance market has seen a strong recovery in the first quarter of this year as supply shortages have eased.”

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”