Consumer car finance volumes fall by 10%

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in May 2023 by 10% compared with the same month in 2022. The corresponding value of new business also fell by 10% over the same period.  In the five months to May 2023, new business fell 9% by value and 8% by volume compared with the same period in 2022.

The consumer new car finance market reported a fall in new business in May of 8% by value and 9% by volume compared with the same month in 2022.  In the five months to May 2023, new business volumes in this market were 9% lower than in the same period in 2022.

The consumer used car finance market reported a fall in new business in May of 11% by value and 10% by volume compared with the same month in 2022.  In the five months to May 2023, new business volumes in this market were 7% lower than in the same period in 2022.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “May saw the continuation of recent trends with a strong performance in the business new car finance market offset by lower levels of new business in both the consumer new and used car finance markets.”

“The industry remains cautiously optimistic about the prospects for future growth, with three-quarters of motor finance respondents to the FLA’s Q2 2023 Industry Outlook Survey anticipating some increase in new business over the next year.”

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