Asset Finance


Consumer Finance


Motor Finance


Steady growth in consumer car finance

10 December 2015

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 6% by volume and 13% by value in October, compared with the same month last year.

The percentage of private new car sales financed by FLA members through dealerships reached 80.1% in the twelve months to October, up from 79.6% in the twelve months to September.

The point-of-sale consumer used car finance market also reported new business growth in October, of 7% by volume and 10% by value.

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

“Point-of-sale consumer car finance volumes have grown by 8% so far in 2015. The FLA’s Q4 2015 Retail Motor Finance Survey shows that member companies expect further single-digit new business growth in 2016 in both the new and used car finance markets.”

Table 1: Cars bought on finance by consumers through dealerships

New business

Oct 2015

% change on prev. year

3 months to Oct 2015

% change on prev. year

12 months to Oct 2015

% change on prev. year

New cars

Value of advances (£m)

1,249

+13

4,627

+15

15,738

+14

Number of cars

75,264

+6

279,370

+8

961,523

+9

Used cars

Value of advances (£m)

1,047

+10

3,083

+11

11,774

+12

Number of cars

97,522

+7

289,449

+8

1,119,590

+8

 

Table 2: Cars bought on finance by businesses

New business

Oct 2015

% change on prev. year

3 months to Oct 2015

% change on prev. year

12 months to Oct 2015

% change on prev. year

New cars

Number of cars

49,727

+4

127,694

-1

510,810

+6

Used cars

Number of cars

3,146

-3

9,113

-7

38,314

-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, almost 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.