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

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