Finance & Leasing Association14 November 2023
New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell by 3% in September 2023 compared with the same month in 2022. The corresponding value of new business held steady over the same period. In the nine months to September 2023, new business volumes were 6% lower than in the same period in 2022.
The consumer new car finance market reported new business up 9% by value and 3% by volume in September compared with the same month in 2022. In the nine months to September 2023, new business volumes in this market were 5% lower than in the same period in 2022.
The consumer used car finance market reported a fall in new business in September of 9% by value and 7% by volume compared with the same month in 2022. In the nine months to September 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 issue of a new registration plate in September gave a boost to the new car finance market with both the business and consumer sectors reporting new business growth by value and volume. The used car finance market continued to report lower levels of new business, with the consumer sector reporting a single-digit fall in volumes in line with trends seen so far in 2023.
“The economic outlook has weakened following a sustained period of high inflation and higher interest rates. Nevertheless, respondents to the FLA’s Q3 2023 Industry Outlook Survey remained optimistic about growth opportunities from supporting businesses and consumers transition to net zero.
“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 |
Sep 2023 |
% change on prev. year |
3 |
% change on prev. year |
12 months to Sep 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
2,249 |
9 |
4,436 |
3 |
16,979 |
-1 |
| Number of cars |
84,653 |
3 |
167,762 |
-2 |
652,746 |
-6 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,821 |
-9 |
5,630 |
-9 |
22,320 |
-6 |
| Number of cars |
119,654 |
-7 |
370,261 |
-8 |
1,475,278 |
-4 |
| Total cars |
|
|
|
|
|
|
| Value of advances (£m) |
4,070 |
0 |
10,066 |
-4 |
39,229 |
-4 |
| Number of cars |
204,307 |
-3 |
538,023 |
-6 |
2,128,024 |
-5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Sep 2023 |
% change on prev. year |
3 months to Sep 2023 |
% change on prev. year |
12 months to Sep 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
35,268 |
41 |
95,424 |
52 |
356,313 |
36 |
| Used cars |
||||||
| Number of cars |
4,672 |
-13 |
16,134 |
-16 |
62,530 |
-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.
