Consumer car finance new business volumes fell by 4% in May 2024

9 July 2024

New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business both by value and volume fell in May 2024 by 4% compared with the same month in 2023. In the five months to May 2024, new business was 1% lower by value and 2% lower by volume compared with the same period in 2023.  

The consumer new car finance market reported new business by value in May 6% higher than in the same month in 2023, while new business volumes fell by 2%.  In the five months to May 2024, new business volumes in this market were 5% lower than in the same period in 2023. 

The consumer used car finance market reported a fall in the value of new business in May of 10% compared with the same month in 2023, while new business volumes decreased by 5%. In the five months to May 2024, new business volumes in this market held steady compared with the same period in 2023. 

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: 

“The point-of-sale (POS) consumer car finance market has seen only a slight fall in new business volumes in 2024 so far.  The finance penetration of the private new BEVs market has continued to improve although the most popular way of obtaining a new BEV continues to be via a salary sacrifice scheme.  

“Our latest research suggested that the POS consumer car finance market would see new business by value hold steady in 2024 at around £39 billion, supported by improved consumer confidence as real earnings continue to grow and with the prospect of lower interest rates.  

“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 2024

%

 change on prev. year

3
months to May 2024

% change on prev. year

12 months to May 2024

% change on prev. year

New cars

 

 

 

 

 

 

Value of advances (£m)

1,457

6

5,286

5

17,041

2

Number of cars

53,042

-2

191,623

-2

628,308

-3

Used cars

 

 

 

 

 

 

Value of advances (£m)

1,788

-10

5,533

-6

21,734

-6

Number of cars

122,255

-5

377,517

-1

1,458,537

-4

Total cars

 

 

 

 

 

 

Value of advances (£m)

3,245

-4

10,819

-1

38,775

-2

Number of cars

175,297

-4

569,140

-2

2,086,845

-4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2: Cars bought on finance by businesses

New business

May 2024

%

 change on prev.

year

3

months to May

2024

% change on prev. year

12 months to May 2024

% change on prev. year

New cars

 

 

 

 

 

 

Number of cars

30,426

0

98,570

0

385,063

24

Used cars

           

Number of cars

3,989

-25

12,995

-5

61,082

-17

 

 

 

Note to editors: 

  1. Consumer car finance reported in these figures refers to finance obtained through the point of sale.
  2. In 2023, FLA members provided £151 billion of new finance to UK businesses and households. £113 billion of this was in the form of consumer credit, almost a third of total new consumer credit written in the UK in 2023. £52 billion of it supported the purchase of new and used cars, including over 78% of private new car registrations.
  3. For media enquiries, please contact the FLA press office on 020 7420 9656.

 

Become a member

What are the benefits of becoming an FLA Member?