8 September 2017
New figures released today by the Finance & Leasing Association (FLA) show that point of sale (POS) consumer new car finance business volumes fell by 7% in July, compared with the same month in 2016, while the value of new business was up by 3% over the same period.
The percentage of private new car sales financed by FLA members through the POS held steady at 86.0% in the twelve months to July.
The POS consumer used car finance market reported new business in July up 17% by value and 10% by volume, compared with the same month in 2016.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The fall in consumer new car finance business volumes is consistent with recent trends in private new car registrations, and FLA members’ penetration of this market remains stable.
“July saw modest new business growth in the consumer car finance market overall. While the recently announced scrappage schemes may provide some boost to private new car sales in the coming months, the industry expects POS consumer car finance new business volumes to be broadly stable in 2017 overall.”
|
Table 1: Cars bought on finance by consumers through dealerships |
||||||
|
New business |
July 2017 |
% change on prev. year |
3 months to July 2017 |
% change on prev. year |
12 months to July 2017 |
% change on prev. year |
|
New cars |
||||||
|
Value of advances (£m) |
1,209 |
+3 |
4,109 |
+1 |
18,341 |
+5 |
|
Number of cars |
64,127 |
-7 |
214,929 |
-9 |
1,006,136 |
-3 |
|
Used cars |
||||||
|
Value of advances (£m) |
1,294 |
+17 |
3,904 |
+14 |
14,473 |
+11 |
|
Number of cars |
114,371 |
+10 |
343,646 |
+8 |
1,299,090 |
+7 |
|
Table 2: Cars bought on finance by businesses |
||||||
|
New business |
July 2017 |
% change on prev. year |
3 months to July 2017 |
% change on prev. year |
12 months to July 2017 |
% change on prev. year |
|
New cars |
||||||
|
Number of cars |
47,900 |
-2 |
145,586 |
+7 |
512,814 |
0 |
|
Used cars |
||||||
|
Number of cars |
7,242 |
+60 |
15,231 |
+11 |
57,074 |
+36 |
Note to editors:
- In 2016, FLA members provided £118 billion of new finance to UK businesses and households. £88 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2016. £41 billion of it supported the purchase of new and used cars, including over 86% of private new car registrations.
- For media enquiries, please contact the FLA press office on 020 7420 9656.