Asset Finance


Consumer Finance


Motor Finance


Consumer new car finance volumes down by 8% in June

16 August 2017

New figures released today by the Finance & Leasing Association (FLA) show that point of sale (POS) consumer new car finance business volumes fell by 8% in June, compared with the same month in 2016, while the value of new business was flat over the same period. In the second quarter of 2017 overall, new business fell 7% by value and 16% by volume.

The percentage of private new car sales financed by FLA members through the POS was 86.3% in the twelve months to June, unchanged compared with the same period to May.

The POS consumer used car finance market reported new business in June up 12% by value and 7% by volume, compared with the same month in 2016.  In the second quarter of 2017, this market reported new business up 9% by value and 4% by volume.

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

“The recent trends in the consumer new car finance market very much reflect those in private new car sales.

“In the first half of 2017, the POS consumer car finance market reported a fall in new business volumes of only 1%, which remains in line with industry expectations of a broadly stable picture for the year as a whole.”

Table 1: Cars bought on finance by consumers through dealerships

  

New business

June  2017

% change on prev. year

3 months to June  2017

% change on prev. year

12 months to June  2017

% change on prev. year

New cars

      

Value of advances (£m)

1,534

0

4,073

-7

18,302

+4

Number of cars

81,403

-8

212,236

-16

1,013,460

-2

Used cars

      

Value of advances (£m)

1,277

+12

3,814

+9

14,289

+10

Number of cars

112,034

+7

338,520

+4

1,288,256

+6

 

Table 2: Cars bought on finance by businesses

    

New business

June  2017

% change on prev. year

3 months to June  2017

% change on prev. year

12 months to June  2017

% change on prev. year

New cars

      

Number of cars

54,359

+15

145,356

+5

513,934

+1

Used cars

      

Number of cars

4,999

+50

10,764

-12

54,353

+35

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.