Consumer car finance volumes fall by 5%

New figures released by the Finance & Leasing Association (FLA) have shown that consumer car finance new business volumes fell in February 2023 by 5% compared with the same month in 2022. The corresponding value of new business also fell by 5% over the same period.  In the first two months of 2023, new business fell 5% by value and 3% by volume, compared with the same period in 2022.

The consumer new car finance market reported new business up 3% by value in February compared with the same month in 2022, while new business volumes held steady.  In the first two months of 2023, new business volumes in this market were 6% lower than in the same period in 2022.

The consumer used car finance market reported a fall in new business of 8% by value and 6% by volume compared with the same month in 2022. In the first two months of 2023, new business volumes in this market decreased by 3% compared with 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 new business volumes only 3% lower in the first two months of 2023 than the same time last year, with single digit falls in both the consumer new and used car finance markets.”

“While the economic outlook has improved, challenges remain for households and businesses as they deal with the impact of higher prices, taxes, and interest rates.  We expect the consumer car finance market to report a fall in new business by value of around 6% in 2023 as a whole.”

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