Finance & Leasing Association6 October 2023
New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business fell 11% by both value and volume in August 2023 compared with the same month in 2022. In the first eight months of 2023, new business was 6% lower by both value and volume compared with the same period in 2022.
The consumer new car finance market reported a fall in new business of 7% by value and 12% by volume in August compared with the same month in 2022. In the first eight months of 2023, new business volumes in this market were 7% lower than in the same period in 2022.
The consumer used car finance market reported a fall in new business in August of 13% by value and 11% by volume compared with the same month in 2022. In the first eight months of 2023, new business volumes in this market were 6% lower than in the same period in 2022.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The lower level of new business reported by the consumer car finance market reflects in part the higher interest rate environment. Consumers also remain cautious about committing to major purchases despite some improvement in confidence as real earnings start to grow again.
“FLA motor finance providers remain positive about future growth prospects with almost three-quarters of respondents to the Q3 2023 Industry Outlook Survey expecting some increase in new business over the next twelve months. This optimism is based on the performance of the wider market including fleet and business which continues to show robust growth in the new car finance market.
“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 |
Aug 2023 |
% change on prev. year |
3 |
% change on prev. year |
12 months to Aug 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
857 |
-7 |
3,806 |
3 |
16,777 |
-3 |
| Number of cars |
32,958 |
-12 |
145,650 |
0 |
650,234 |
-8 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,853 |
-13 |
5,650 |
-9 |
22,427 |
-5 |
| Number of cars |
123,924 |
-11 |
373,041 |
-8 |
1,482,865 |
-4 |
| Total cars |
|
|
|
|
|
|
| Value of advances (£m) |
2,711 |
-11 |
9,457 |
-5 |
39,204 |
-4 |
| Number of cars |
156,882 |
-11 |
518,691 |
-6 |
2,133,099 |
-5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Aug 2023 |
% change on prev. year |
3 months to Aug 2023 |
% change on prev. year |
12 months to Aug 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
30,348 |
71 |
97,787 |
59 |
352,476 |
30 |
| Used cars |
||||||
| Number of cars |
3,851 |
-28 |
15,619 |
-40 |
59,849 |
-24 |
Note to editors:
- Consumer car finance reported in these figures refers to finance obtained through the point of sale.
- In 2022, FLA members provided £151 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 83% of private new car registrations.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
