Asset Finance


Consumer Finance


Motor Finance


Consumer car finance volumes up 8% in 2016

10 February 2017

New figures released today by the Finance & Leasing Association (FLA) show that new business in the point of sale (POS) consumer car finance market grew 12% by value and 8% by volume in 2016. New business was up 3% by value and down 3% by volume in December, compared with the same month in 2015.

The POS consumer new car finance market reported new business up 1% by value and 8% lower by volume in December compared with the same month in 2015. In 2016 as a whole, new business grew 12% by value and 6% by volume.

The percentage of private new car sales financed by FLA members through the POS reached 86.6% in 2016, up from 81.4% in 2015.

The POS consumer used car finance market reported new business growth in December of 7% by value and 2% by volume. In 2016 as a whole, new business grew 12% by value and 9% by volume.

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 another record year in 2016, with new business volumes reaching 2.3 million cars. Our latest confidence survey suggests broadly stable new business volumes in 2017.”

Table 1: Cars bought on finance by consumers through dealerships

New business

Dec  2016

% change on prev. year

3 months to Dec  2016

% change on prev. year

12 months to Dec  2016

% change on prev. year

New cars

Value of advances (£m)

1,167

+1

3,870

+7

18,085

+12

Number of cars

61,952

-8

213,574

+0

1,045,144

+6

Used cars

Value of advances (£m)

884

+7

3,133

+9

13,558

+12

Number of cars

77,436

+2

280,100

+6

1,253,706

+9

Total

Value of advances (£m)

2,051

+3

7,004

+8

31,643

+12

Number of cars

139,388

-3

493,674

+3

2,298,850

+8

 

Table 2: Cars bought on finance by businesses

New business

Dec  2016

% change on prev. year

3 months to Dec  2016

% change on prev. year

12 months to Dec  2016

% change on prev. year

New cars

Number of cars

34,591

-11

115,931

-6

504,861

-1

Used cars

Number of cars

5,483

+32

14,286

+42

46,845

+20

Note to editors:

  1. 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.