Finance & Leasing Association12 July 2023
New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in May 2023 by 10% compared with the same month in 2022. The corresponding value of new business also fell by 10% over the same period. In the five months to May 2023, new business fell 9% by value and 8% by volume compared with the same period in 2022.
The consumer new car finance market reported a fall in new business in May of 8% by value and 9% by volume compared with the same month in 2022. In the five months to May 2023, new business volumes in this market were 9% lower than in the same period in 2022.
The consumer used car finance market reported a fall in new business in May of 11% by value and 10% by volume compared with the same month in 2022. In the five months to May 2023, new business volumes in this market were 7% lower than in the same period in 2022.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“May saw the continuation of recent trends with a strong performance in the business new car finance market offset by lower levels of new business in both the consumer new and used car finance markets.
“The industry remains cautiously optimistic about the prospects for future growth, with three-quarters of motor finance respondents to the FLA’s Q2 2023 Industry Outlook Survey anticipating some increase in new business over the next year.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
| Table 1: Cars bought on finance by consumers through the point of sale |
||||||
| New business |
May 2023 |
% change on prev. year |
3 |
% change on prev. year |
12 months to May 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,391 |
-8 |
5,094 |
-8 |
16,759 |
-6 |
| Number of cars |
54,759 |
-9 |
199,030 |
-10 |
656,034 |
-11 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,905 |
-11 |
5,655 |
-12 |
22,659 |
0 |
| Number of cars |
124,692 |
-10 |
371,667 |
-11 |
1,499,625 |
-2 |
| Total cars |
|
|
|
|
|
|
| Value of advances (£m) |
3,296 |
-10 |
10,749 |
-11 |
39,418 |
-3 |
| Number of cars |
179,451 |
-10 |
570,697 |
-11 |
2,155,659 |
-5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
May 2023 |
% change on prev. year |
3 months to May 2023 |
% change on prev. year |
12 months to May 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
31,068 |
39 |
100,269 |
35 |
317,386 |
11 |
| Used cars |
||||||
| Number of cars |
4,594 |
-54 |
11,621 |
-41 |
69,125 |
9 |
Note to editors:
- Consumer car finance reported in these figures refers to finance obtained through the point of sale.
- In 2022, FLA members provided £150 billion of new finance to UK businesses and households. £116 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2022. £51 billion of it supported the purchase of new and used cars, including almost 84% of private new car registrations.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
