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:
- 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.