Finance & Leasing Association7 December 2023
New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell by 3% in October 2023 compared with the same month in 2022. The corresponding value of new business was 2% lower over the same period. In the ten months to October 2023, new business volumes remained 6% lower than in the same period in 2022.
The consumer new car finance market reported new business up 1% by value but 2% lower by volume in October compared with the same month in 2022. In the ten months to October 2023, new business volumes in this market remained 5% lower than in the same period in 2022.
The consumer used car finance market reported a fall in new business in October of 5% by value and 4% by volume compared with the same month in 2022. In the ten months to October 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 consumer car finance market remains remarkably resilient despite the subdued economic outlook, with the value of new business expected to be only 4% lower in 2023 than in 2022.
“FLA’s latest research also suggests that the value of consumer car finance new business in 2024 is expected to grow by 2% to £40.1 billion. The value of new business provided to consumers for new car purchases is forecast to grow by 9% in 2024 to £18.9 billion, while consumer used car finance new business by value is expected to fall by 4% in 2024 to £21.2 billion.
“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 |
Oct 2023 |
% change on prev. year |
3 |
% change on prev. year |
12 months to Oct 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,387 |
1 |
4,504 |
3 |
17,000 |
-2 |
| Number of cars |
51,953 |
-2 |
169,705 |
-2 |
651,933 |
-6 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,831 |
-5 |
5,571 |
-8 |
22,222 |
-7 |
| Number of cars |
123,390 |
-4 |
369,296 |
-7 |
1,469,574 |
-5 |
| Total cars |
|
|
|
|
|
|
| Value of advances (£m) |
3,218 |
-2 |
10,074 |
-3 |
39,223 |
-5 |
| Number of cars |
175,343 |
-3 |
539,001 |
-5 |
2,121,507 |
-6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Oct 2023 |
% change on prev. year |
3 months to Oct 2023 |
% change on prev. year |
12 months to Oct 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
34,123 |
41 |
99,585 |
51 |
365,350 |
40 |
| Used cars |
||||||
| Number of cars |
5,928 |
-31 |
15,666 |
-20 |
60,243 |
-30 |
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.
