Consumer car finance new business grows by 8%

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew in April 2024 by 8% compared with the same month in 2023. The corresponding value of new business was 7% higher over the same period.  In the first four months of 2024, new business by both value and volume fell by 1% compared with the same period in 2023.

The consumer new car finance market reported new business by value in April 9% higher than in the same month in 2023, while new business volumes increased by 2%.  In the first four months of 2024, new business volumes in this market were 6% lower than in the same period in 2023.

The consumer used car finance market reported the value of new business up in April by 6% compared with the same month in 2023, while new business volumes increased by 11%.  In the first four months of 2024, new business volumes in this market were 1% higher than in the same period in 2023.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The strong performance in April can in part be attributed to a shorter working month in April 2023 due to the timing of Easter. There has also been a significant improvement in consumer confidence with better news on inflation and the prospect of lower interest rates leading to greater optimism about personal finances.

“The General Election campaigns are in full swing but for many households the key to maintaining confidence will be a reduction in interest rates in the second half of 2024.  Our latest research suggested that the point-of-sale consumer car finance market would see new business by value hold steady in 2024 at around £39 billion.”