Asset Finance


Consumer Finance


Motor Finance


Consumer new car finance volumes up 3% in Q1 2017

12 May 2017

New figures released today by the Finance & Leasing Association (FLA) show that new business in the point of sale (POS) consumer new car finance market grew 13% by value and 5% by volume in March, compared with the same month in 2016. In Q1 2017, new business was up 10% by value and 3% by volume, compared with the same quarter in 2016.

The percentage of private new car sales financed by FLA members through the POS was 86.5% in the twelve months to March, unchanged compared with the same period to February.

The POS consumer used car finance market also reported new business growth in March of 17% by value and 11% by volume, while in Q1 overall, new business was up 12% by value and 6% by volume.

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

“The first quarter of 2017 saw consumer car finance new business volumes increase in line with the industry’s expectations of single-digit growth for the year overall.

“The percentage of private new car sales financed by FLA members has remained steady at 86.5% since the beginning of 2017.”

Table 1: Cars bought on finance by consumers through dealerships

New business

Mar  2017

% change on prev. year

3 months to Mar  2017

% change on prev. year

12 months to Mar  2017

% change on prev. year

New cars

Value of advances (£m)

3,623

+13

5,516

+10

18,601

+9

Number of cars

194,348

+5

305,406

+3

1,054,802

+4

Used cars

Value of advances (£m)

1,408

+17

3,866

+12

13,965

+11

Number of cars

125,179

+11

348,059

+6

1,274,553

+8

 

Table 2: Cars bought on finance by businesses

New business

Mar  2017

% change on prev. year

3 months to Mar  2017

% change on prev. year

12 months to Mar  2017

% change on prev. year

New cars

Number of cars

58,201

-2

124,668

+1

506,398

-2

Used cars

Number of cars

4,671

+45

15,694

+73

53,474

+43

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 queries, please contact the FLA press office on 020 7420 9656.