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Consumer new car finance volumes down 7% in October

13 December 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 7% in October, compared with the same month in 2016, while the value of new business was up by 2% over the same period.

The percentage of private new car sales financed by FLA members through the POS was 86.1% in the twelve months to October, compared with 86.0% in the same period to September.

The POS consumer used car finance market reported new business in October up 15% by value and 9% 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:

“Falls in new business volumes reported by the POS consumer new car finance market so far in 2017 have mirrored trends in private new car sales. FLA members’ penetration of this market has held steady at around 86%.

“In 2017 as a whole, new business volumes in the POS consumer car finance market overall are expected to be around 2.3 million, a similar level to 2016.”

Table 1: Cars bought on finance by consumers through dealerships

  

New business

Oct 2017

% change on prev. year

3 months to Oct 2017

% change on prev. year

12 months to Oct 2017

% change on prev. year

New cars

      

Value of advances (£m)

1,373

+2

5,063

+1

18,382

+3

Number of cars

71,002

-7

261,042

-9

979,975

-6

Used cars

      

Value of advances (£m)

1,353

+15

3,909

+10

14,836

+10

Number of cars

116,918

+9

339,717

+4

1,313,327

+5

 

Table 2: Cars bought on finance by businesses

    

New business

Oct 2017

% change on prev. year

3 months to Oct 2017

% change on prev. year

12 months to Oct 2017

% change on prev. year

New cars

      

Number of cars

46,192

+7

118,165

-3

509,143

+1

Used cars

      

Number of cars

4,527

+1

13,682

+12

58,556

+30

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.