News
New figures show 15% rise in car finance market
Forecourt finance remains popular, with more than 36,000 people in May financing a new car in this way, according to figures published today by the Finance & Leasing Association.
New car finance sales in May increased by 15% compared to May 2009 and more than half of car buyers in May used dealer finance to fund their purchase, showing that the end of the scrappage scheme did not lead to the feared drop-off in the number of customers wanting to buy new cars. Business purchases of new cars on finance also grew by 21% in May compared with a year earlier.
The latest figures also show that consumers are taking advantage of dealer finance to buy used cars in similar numbers to last year. More than 52,000 used cars were bought with the help of dealer finance in May.
Commenting on May’s motor finance figures, Paul Harrison, Head of Motor Finance, said:
“Dealers are offering value-for-money deals, which have kept customers coming through the doors. This has meant that the amount of dealer finance provided to consumers for new cars has grown by a fifth in the last 12 months compared with the previous 12-month period.
“The first half of the year has been encouraging for dealers. But we expect to see sales of new cars on finance drop off later in the year while used car finance sales will pick up as second-hand stock becomes more available.”
Table 1: Cars bought on finance by consumers through dealerships
| May 10 | % change | 3 months to May 2010 | % change | 12 months to May 2010 | % change | |
| New cars | ||||||
| Value of advances (£m) | 485 | +21 | 2,129 | +32 | 6,416 | +21 |
| Number of cars | 36,245 | +15 | 170,738 | +31 | 515,718 | +20 |
| Used cars | ||||||
| Value of advances (£m) | 491 | +8 | 1,630 | +11 | 5,661 | -3 |
| Number of cars | 52,234 | +0 | 176,989 | +4 | 609,322 | -7 |
Table 2: Cars bought on finance by businesses
| May 10 | % change | 3 months to May 2010 | % change | 12 months to May 2010 | % change | |
| New cars | ||||||
| Number of cars | 29,479 | +21 | 109,876 | +21 | 369,215 | +1 |
| Used cars | ||||||
| Number of cars | 3,901 | +13 | 12,962 | +8 | 48,096 | -8 |
- ends -
Note to editors:
- See www.financingyourcar.org.uk for impartial information on finance options for buying a car.
- The FLA is the leading trade association for the motor finance sector in the UK. FLA members provided £16.5 billion of motor finance in 2009 and financed more than 45% of all new car registrations in the UK.
For further media information, please contact:
Russell Hamblin-Boone, FLA
T: 020 7420 9656 E: russell.hamblin-boone@fla.org.uk M: 07810 374110
Helen Saxon, FLA
T: 020 7420 9664 E: helen.saxon@fla.org.uk M: 07918 766 993