Asset Finance


Consumer Finance


Motor Finance


Consumer new car finance volumes up 6% in May

9 July 2015

Figures released today by the Finance & Leasing Association (FLA) show the number of new cars bought on finance provided through dealerships grew 6% in May, compared with the same month a year earlier – with average advances to consumers for new car purchases up 4% in May to £16,500 compared with May last year.

As a result, the percentage of private new car sales financed by FLA members through dealerships reached 77.6% in the twelve months to May 2015, a record high.

The point-of-sale consumer used car finance market also showed continued growth, with new business up 8% by value and 3% by volume in May compared with May 2014.

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

“Growth in point-of-sale consumer car finance in 2015 so far has continued in line with expectations.

“Recent research by Oxford Economics showed the importance of FLA motor finance providers to the UK economy, funding more than 57% of all consumer spending on cars in 2014, up from 35% in 2007.”

Table 1: Cars bought on finance by consumers through dealerships

May 2015

% change on prev. year

3 months to May 2015

% change on prev. year

12 months to May 2015

% change on prev. year

New cars

Value of advances (£m)

1,215

+10

5,197

+14

14,750

+13

Number of cars

73,659

+6

317,440

+9

920,459

+9

Used cars

Value of advances (£m)

972

+8

3,138

+14

11,199

+15

Number of cars

92,431

+3

299,915

+10

1,083,499

+10

 

Table 2: Cars bought on finance by businesses

May 2015

% change on prev. year

3 months to May 2015

% change on prev. year

12 months to May 2015

% change on prev. year

New cars

Number of cars

45,328

+15

154,314

+19

504,966

+14

Used cars

Number of cars

3,300

-4

10,963

-1

40,274

-17

Note to editors:

  1. In 2014, FLA members provided £100 billion of new finance to UK businesses and households. £74 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK last year. £32.7 billion of it supported the purchase of new and used cars, including over three-quarters of private new car registrations.