Asset Finance


Consumer Finance


Motor Finance


Further growth in motor finance in March

13 May 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 growth of 17% by value and 10% by volume in March, compared with the same month last year. In Q1 overall, new business was up 19% by value and 13% by volume.

The percentage of private new car sales financed by FLA members through dealerships reached 82.7% in the twelve months to March, up from 81.9% in the twelve months to February.

The POS consumer used car finance market also reported new business growth in March, of 8% by value and 6% by volume.

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

“The POS consumer new and used car finance markets continued to grow in March, although at slower rates than reported in recent months. The performance of these markets in the first quarter of 2016 is slightly ahead of the single-digit growth expectations for 2016 as a whole.”

Table 1: Cars bought on finance by consumers through dealerships

New business

Mar 2016

% change on prev. year

3 months to Mar 2016

% change on prev. year

12 months to Mar 2016

% change on prev. year

New cars

Value of advances (£m)

3,198

+17

4,999

+19

17,005

+18

Number of cars

184,546

+10

295,743

+13

1,017,532

+12

Used cars

Value of advances (£m)

1,206

+8

3,460

+15

12,564

+14

Number of cars

113,250

+6

327,231

+12

1,181,910

+10

 

Table 2: Cars bought on finance by businesses

New business

Mar 2016

% change on prev. year

3 months to Mar 2016

% change on prev. year

12 months to Mar 2016

% change on prev. year

New cars

Number of cars

59,614

+5

123,146

+6

515,278

+6

Used cars

Number of cars

3,211

-30

9,075

-14

37,510

-10

 

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.