POS consumer car finance volumes up by 6% in July

7 September 2018

New figures released today by the Finance & Leasing Association (FLA) show that point of sale (POS) consumer car finance new business volumes grew 6% in July, compared with the same month in 2017, while the value of new business increased by 11% over the same period.

The POS consumer new car finance market reported new business in July up 5% by volume and 10% by value, compared with the same month in 2017. The percentage of private new car sales financed by FLA members through the POS was 89.8% in the twelve months to July.

The POS consumer used car finance market reported new business in July up 6% by volume and 13% by value, compared with the same month in 2017.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“The point of sale consumer car finance market reported new business volumes up by 4% in the first seven months of 2018, in line with expectations of modest single-digit growth in 2018 as a whole.”

Table 1: Cars bought on finance by consumers through dealerships
New business	Jul 2018	% change on prev. year	3 months to Jul 2018	% change on prev. year	12 months to Jul 2018	% change on prev. year
New cars
Value of advances (£m)	1,376	+10	4,707	+11	19,602	+4
Number of cars	68,786	+5	230,414	+5	982,073	-5
Used cars
Value of advances (£m)	1,513	+13	4,524	+12	16,715	+13
Number of cars	125,153	+6	376,445	+6	1,420,591	+7
Total cars
Value of advances (£m)	2,889	+11	9,232	+11	36,317	+8
Number of cars	193,939	+6	606,859	+6	2,402,664	+2

Table 2: Cars bought on finance by businesses
New business	Jul 2018	% change on prev. year	3 months to Jul 2018	% change on prev. year	12 months to Jul 2018	% change on prev. year
New cars
Number of cars	39,930	-14	121,447	-13	443,579	-8
Used cars
Number of cars	4,208	-45	13,664	-16	59,946	-1

Note to editors:

1. In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2017. £44 billion of it supported the purchase of new and used cars, including over 88% of private new car registrations.
2. For media enquiries, please contact the FLA press office on 020 7420 9656.

Original Article