Asset Finance


Consumer Finance


Motor Finance


Double-digit growth in consumer used car finance in May

8 July 2016

New figures released today by the Finance & Leasing Association (FLA) show that the point-of-sale (POS) consumer used car finance market saw new business grow 22% by value and 18% by volume in May, compared with the same month last year.

The POS consumer new car finance market also reported growth in May, with new business up 14% by value and 8% by volume.

The percentage of private new car sales financed by FLA members through the POS reached 84.3% in the twelve months to May, up from 83.6% in the twelve months to April.

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

“The POS consumer car finance market continued to report robust growth in May, as new business volumes overall grew by 14% compared with the same month in 2015. New business volumes in these markets in the first five months of 2016 grew at a similar rate.”

Table 1: Cars bought on finance by consumers through dealerships

New business

May 2016

% change on prev. year

3 months to May 2016

% change on prev. year

12 months to May 2016

% change on prev. year

New cars

Value of advances (£m)

1,385

+14

6,039

+16

17,385

+18

Number of cars

79,676

+8

349,658

+10

1,032,995

+12

Used cars

Value of advances (£m)

1,189

+22

3,558

+13

12,874

+14

Number of cars

110,031

+18

333,102

+10

1,206,679

+11

 

Table 2: Cars bought on finance by businesses

New business

May 2016

% change on prev. year

3 months to May 2016

% change on prev. year

12 months to May 2016

% change on prev. year

New cars

Number of cars

39,631

-13

150,427

-3

508,126

+1

Used cars

Number of cars

5,875

+73

12,069

+8

39,796

-2

Note to editors:

  1. The FLA’s response to the recent EU referendum can be found in this press release.
  2. 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.