Finance & Leasing Association10 August 2023
New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in June 2023 by 2% compared with the same month in 2022. The corresponding value of new business grew by 2% over the same period. In the first half of 2023, new business fell 5% by value and 6% by volume compared with the same period in 2022.
The consumer new car finance market reported growth in new business of 14% by value and 11% by volume in June compared with the same month in 2022. In the first half of 2023, new business volumes in this market were 6% lower than in the same period in 2022.
The consumer used car finance market reported a fall in new business in June of 7% by both value and volume compared with the same month in 2022. In the first half of 2023, new business volumes in this market were 5% lower than in the same period in 2022.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“June saw the first growth in the consumer new car finance market since February of this year, and continued strong growth in the business new car finance market. The easing of supply issues in the first half of 2023 contributed to a much-improved performance in the new car finance market overall as new business volumes grew by 5%.
“The consumer used car finance market proved resilient in the first half of 2023 despite tougher economic conditions and following a record first half of 2022.
“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 |
Jun 2023 |
% change on prev. year |
3 |
% change on prev. year |
12 months to Jun 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,641 |
14 |
4,226 |
-3 |
16,865 |
-3 |
| Number of cars |
62,833 |
11 |
163,996 |
-6 |
656,592 |
-8 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,918 |
-7 |
5,678 |
-9 |
22,858 |
0 |
| Number of cars |
124,401 |
-7 |
368,510 |
-9 |
1,507,587 |
-1 |
| Total cars |
|
|
|
|
|
|
| Value of advances (£m) |
3,559 |
2 |
9,904 |
-7 |
39,723 |
-1 |
| Number of cars |
187,234 |
-2 |
532,506 |
-8 |
2,164,179 |
-3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Jun 2023 |
% change on prev. year |
3 months to Jun 2023 |
% change on prev. year |
12 months to Jun 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
37,202 |
65 |
97,230 |
43 |
330,688 |
19 |
| Used cars |
||||||
| Number of cars |
5,746 |
-55 |
14,141 |
-50 |
63,169 |
-13 |
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.
