Asset Finance


Consumer Finance


Motor Finance


Consumer car finance continues to grow in July

8 September 2016

New figures released today by the Finance & Leasing Association (FLA) show that the point-of-sale (POS) consumer new car finance market grew 1% by value and 1% by volume in July, compared with the same month last year.

The percentage of private new car sales financed by FLA members through the POS reached 85.3% in the twelve months to July, up from 84.9% in the twelve months to June.

The POS consumer used car finance market also reported new business growth in July, of 2% by value and 1% by volume.

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

“The performance of the POS consumer new and used car finance markets remains in line with our expectations for 2016 as a whole. The FLA’s Q3 2016 retail motor finance confidence survey suggests that new business levels will remain broadly stable over the next twelve months.”

Table 1: Cars bought on finance by consumers through dealerships

New business

Jul 2016

% change on prev. year

3 months to Jul 2016

% change on prev. year

12 months to Jul 2016

% change on prev. year

New cars

Value of advances (£m)

1,171

+1

4,089

+8

17,529

+16

Number of cars

71,494

+1

239,701

+5

1,038,050

+10

Used cars

Value of advances (£m)

1,110

+2

3,438

+10

12,984

+13

Number of cars

103,554

+1

318,610

+8

1,213,908

+10

 

Table 2: Cars bought on finance by businesses

New business

Jul 2016

% change on prev. year

3 months to Jul 2016

% change on prev. year

12 months to Jul 2016

% change on prev. year

New cars

Number of cars

48,811

+5

135,606

-2

510,681

0

Used cars

Number of cars

4,134

+39

13,122

+43

41,286

+6

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.