Car finance grows at a modest rate in November

16 January 2015

Figures released today by the Finance & Leasing Association (FLA) show 7% growth in consumer new car finance volumes during November 2014, compared with the same month the previous year. In the twelve months to November, this market reported growth of 13%. The percentage of private new car sales financed through dealerships by FLA members held steady at 75.9% over the same period.

There was modest growth also in consumer used car finance volumes, up 5% on November 2013. In the twelve months to November, this market reported volumes up by 15%.

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

“Car finance provided through dealerships is popular with consumers because of the range of finance products on offer. Personal Contract Purchase (PCP) has become a popular choice for many consumers, reflecting a change in attitudes to car ownership. But many customers still want to own their car outright and as a result we have also seen growth in hire purchase over the last year.”

Table 1: Cars bought on finance by consumers through dealerships

   
 

Nov 2014

% change on prev. year

3 months to Nov 2014

% change on prev. year

12 months to Nov 2014

% change on prev. year

New cars

           

Value of advances (£m)

965

+10

4,347

+15

13,963

+18

Number of cars

59,983

+7

273,986

+11

892,737

+13

Used cars

           

Value of advances (£m)

806

+11

2,722

+17

10,542

+22

Number of cars

76,572

+5

260,267

+10

1,039,069

+15

 

Table 2: Cars bought on finance by businesses

       
 

Nov 2014

% change on prev. year

3 months to Nov 2014

% change on prev. year

12 months to Nov 2014

% change on prev. year

New cars

           

Number of cars

33,091

0

122,741

+18

455,489

+14

Used cars

           

Number of cars

2,270

+3

9,341

-18

40,894

-30

Note to editors:

  1. In 2013 FLA members provided £89.0 billion of new finance to UK businesses and households. £66.6 billion of this was in the form of consumer credit, almost a third of all unsecured lending in the UK. And £27.6 billion of it supported the purchase of new and used cars, including almost three-quarters of private new car registrations.

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