Consumer car finance market up by 9% in August

5 October 2018

New figures released today by the Finance & Leasing Association (FLA) show that new business volumes in the point of sale (POS) consumer new car finance market grew by 9% in August, compared with the same month in 2017, while the value of new business was up by 14% over the same period.

The percentage of private new car sales financed by FLA members through the POS fell slightly to 89.6% in the twelve months to August.

The POS consumer used car finance market reported new business in August up 9% by volume and 15% by value, compared with the same month last year.

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

“A boost to private new car sales in August ahead of changes to emission standards in September contributed to the increase in new business volumes reported by the POS consumer new car finance market. In the first eight months of 2018, new business volumes in this market were at a similar level to the same period in 2017.

“The average advance reported by the POS consumer car finance market in August was 5% higher than in the same month in 2017, in line with growth in new and used car prices over the same period.”

Table 1: Cars bought on finance by consumers through dealerships
New business	Aug 2018	% change on prev. year	3 months to Aug 2018	% change on prev. year	12 months to Aug 2018	% change on prev. year
New cars
Value of advances (£m)	974	+14	4,069	+10	19,729	+4
Number of cars	50,936	+9	203,256	+4	986,703	-4
Used cars
Value of advances (£m)	1,542	+15	4,538	+13	17,043	+14
Number of cars	127,287	+9	374,261	+7	1,440,465	+8
Total cars
Value of advances (£m)	2,517	+14	8,607	+12	36,772	+8
Number of cars	178,223	+9	577,517	+6	2,427,168	+3

Table 2: Cars bought on finance by businesses
New business	Aug 2018	% change on prev. year	3 months to Aug 2018	% change on prev. year	12 months to Aug 2018	% change on prev. year
New cars
Number of cars	27,108	-6	107,798	-15	440,953	-9
Used cars
Number of cars	4,100	-16	13,578	-18	54,479	-8

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