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Consumer Finance


Motor Finance


Consumer new car finance volumes down 11% in September

9 November 2017

New figures released today by the Finance & Leasing Association (FLA) show that new business volumes in the point of sale (POS) consumer new car finance market fell by 11% in September, compared with the same month in 2016, while the growth in the value of new business was flat over the same period. In Q3 2017 overall, new business was up 1% by value, but fell 9% by volume.

The percentage of private new car sales financed by FLA members through the POS held steady at 86.0% in the twelve months to September.

The POS consumer used car finance market reported new business in September up 9% by value and 3% by volume, compared with the same month last year.

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

“The performance of the POS consumer new car finance market in September continued to reflect recent trends in private new car sales. 

“Despite subdued consumer confidence, new business volumes in the POS consumer car finance market overall were stable in the first nine months of 2017, compared with the same period in 2016.”

Table 1: Cars bought on finance by consumers through dealerships

  

New business

Sep 2017

% change on prev. year

3 months to Sep 2017

% change on prev. year

12 months to Sep 2017

% change on prev. year

New cars

      

Value of advances (£m)

2,869

0

4,898

+1

18,358

+3

Number of cars

144,143

-11

254,167

-9

985,382

-5

Used cars

      

Value of advances (£m)

1,277

+9

3,849

+11

14,663

+10

Number of cars

110,000

+3

337,170

+5

1,303,848

+5

 

Table 2: Cars bought on finance by businesses

    

New business

Sep 2017

% change on prev. year

3 months to Sep 2017

% change on prev. year

12 months to Sep 2017

% change on prev. year

New cars

      

Number of cars

41,827

-16

119,873

-6

505,930

-1

Used cars

      

Number of cars

3,862

-8

16,397

+34

58,492

+34

Note to editors:

  1. In 2016, FLA members provided £118 billion of new finance to UK businesses and households. £88 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2016. £41 billion of it supported the purchase of new and used cars, including over 86% of private new car registrations.

  2. For media enquiries, please contact the FLA press office on 020 7420 9656.