Asset Finance


Consumer Finance


Motor Finance


Continued growth in consumer car finance

10 October 2016

New figures released today by the Finance & Leasing Association (FLA) show that new business in the point-of-sale (POS) consumer new car finance market grew 9% by value and 5% by volume in August, compared with the same month last year.

The percentage of private new car sales financed by FLA members through the POS reached 85.5% in the twelve months to August, up from 85.3% in the twelve months to July.

The POS consumer used car finance market also reported new business growth in August, of 23% by value and 21% by volume.

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

“The growth reported by the POS consumer car finance market in August marked more than five years of consecutive monthly new business growth. The performance of this market is in line with our expectations of strong single-digit new business growth in 2016 as a whole.”

Table 1: Cars bought on finance by consumers through dealerships

New business

Aug 2016

% change on prev. year

3 months to Aug 2016

% change on prev. year

12 months to Aug 2016

% change on prev. year

New cars

Value of advances (£m)

805

+9

3,509

+6

17,596

+16

Number of cars

49,740

+5

209,765

+4

1,040,519

+10

Used cars

Value of advances (£m)

1,186

+23

3,435

+11

13,209

+14

Number of cars

110,572

+21

319,151

+9

1,232,904

+11

 

Table 2: Cars bought on finance by businesses

New business

Aug 2016

% change on prev. year

3 months to Aug 2016

% change on prev. year

12 months to Aug 2016

% change on prev. year

New cars

Number of cars

29,374

0

125,348

+2

510,671

+1

Used cars

Number of cars

3,303

+69

10,566

+36

42,635

+12

Note to editors:

  1. In 2015, FLA members provided £110 billion of new finance to UK businesses and households. £81 billion of this was in the form of consumer credit, almost a third of total new consumer credit written in the UK in 2015. £37 billion of it supported the purchase of new and used cars, including over 80% of private new car registrations.