Asset Finance


Consumer Finance


Motor Finance


Continued strong growth in motor finance

14 January 2016

New figures released today by the Finance & Leasing Association (FLA) show that the point-of-sale consumer new car finance market saw new business growth of 17% by volume and 24% by value in November 2015, compared with the same month in the previous year.

The percentage of private new car sales financed by FLA members through dealerships reached 80.9% in the twelve months to November, up from 80.1% in the twelve months to October.

The point-of-sale consumer used car finance market also saw strong growth in November, with new business up 18% by volume and 22% by value.

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

“The growth in new business in November reflects the continuing strength of consumer confidence. The point-of-sale consumer car finance market is likely to report growth in new business volumes for 2015 as a whole of 9%, in line with expectations.”

Table 1: Cars bought on finance by consumers through dealerships

New business

Nov 2015

% change on prev. year

3 months to Nov 2015

% change on prev. year

12 months to Nov 2015

% change on prev. year

New cars

Value of advances (£m)

1,199

+24

5,088

+17

15,972

+15

Number of cars

70,133

+17

302,232

+10

971,673

+9

Used cars

Value of advances (£m)

980

+22

3,109

+15

11,953

+13

Number of cars

90,115

+18

288,655

+11

1,133,608

+9

 

Table 2: Cars bought on finance by businesses

New business

Nov 2015

% change on prev. year

3 months to Nov 2015

% change on prev. year

12 months to Nov 2015

% change on prev. year

New cars

Number of cars

33,539

-3

131,849

+2

509,661

+6

Used cars

Number of cars

2,671

-2

9,830

+3

38,254

-10

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, a third of total new consumer credit written in the UK in 2014. £32.7 billion of it supported the purchase of new and used cars, including over three-quarters of private new car registrations.