Asset Finance


Consumer Finance


Motor Finance


Consumer car finance volumes up 11% in first half of 2016

5 August 2016

New figures released today by the Finance & Leasing Association (FLA) show that the point-of-sale (POS) consumer new car finance market saw new business grow 10% by value and 5% by volume in June, compared with the same month last year. In the first half of 2016 overall, new business was up 16% by value and 11% by volume.

The percentage of private new car sales financed by FLA members through the POS reached 84.9% in the twelve months to June, up from 84.3% in the twelve months to May.

The POS consumer used car finance market also reported new business up 9% by value and 7% by volume in June. New business in the first half of 2016 grew 14% by value and 11% by volume.

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

“The POS consumer car finance market reported a strong performance in the first half of 2016, with double-digit growth in both the new and used car finance markets. Despite modest contractions in private new car registrations in recent months, FLA members have continued to report growth in new business volumes.”

Table 1: Cars bought on finance by consumers through dealerships

New business

Jun 2016

% change on prev. year

3 months to Jun 2016

% change on prev. year

12 months to Jun 2016

% change on prev. year

New cars

Value of advances (£m)

1,533

+10

4,374

+13

17,518

+17

Number of cars

88,531

+5

253,643

+8

1,037,000

+11

Used cars

Value of advances (£m)

1,139

+9

3,491

+13

12,965

+14

Number of cars

105,025

+7

324,877

+11

1,213,337

+11

 

Table 2: Cars bought on finance by businesses

New business

Jun 2016

% change on prev. year

3 months to Jun 2016

% change on prev. year

12 months to Jun 2016

% change on prev. year

New cars

Number of cars

47,163

0

138,079

-5

508,205

-1

Used cars

Number of cars

3,129

+10

12,028

+28

40,120

+1

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.