Finance & Leasing Association11 September 2023
New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in July 2023 by 6% compared with the same month in 2022. The corresponding value of new business fell by 5% over the same period. In the seven months to July 2023, new business also decreased 5% by value and 6% by volume compared with the same period in 2022.
The consumer new car finance market reported a fall in new business of 2% by value and 4% by volume in July compared with the same month in 2022. In the seven months to July 2023, new business volumes in this market remained 6% lower than in the same period in 2022.
The consumer used car finance market reported a fall in new business in July of 8% by value and 6% by volume compared with the same month in 2022. In the seven months to July 2023, new business volumes in this market remained 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:
“The consumer car finance market reported a modest fall in new business in July, in line with the performance of the market so far this year and reflecting more cautious consumer sentiment given the higher interest rate environment.
“FLA’s latest research suggests that the value of consumer car finance new business in 2023 is likely to be only 2.5% lower than in 2022 at £39.8 billion. The value of new business provided to consumers for new car purchases is expected to grow by 2.1% in 2023 to £17.5 billion, while consumer used car finance new business by value is forecast to fall by 5.7% in 2023 to £22.3 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 |
Jul 2023 |
% change on prev. year |
3 |
% change on prev. year |
12 months to Jul 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,308 |
-2 |
4,329 |
2 |
16,843 |
-3 |
| Number of cars |
49,859 |
-4 |
166,668 |
-1 |
654,600 |
-7 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,883 |
-8 |
5,785 |
-7 |
22,706 |
-2 |
| Number of cars |
125,064 |
-6 |
377,741 |
-7 |
1,499,120 |
-2 |
| Total cars |
|
|
|
|
|
|
| Value of advances (£m) |
3,191 |
-5 |
10,114 |
-4 |
39,548 |
-2 |
| Number of cars |
174,923 |
-6 |
544,409 |
-5 |
2,153,720 |
-4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Jul 2023 |
% change on prev. year |
3 months to Jul 2023 |
% change on prev. year |
12 months to Jul 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
30,237 |
43 |
98,413 |
50 |
339,844 |
24 |
| Used cars |
||||||
| Number of cars |
6,022 |
-23 |
16,554 |
-46 |
61,324 |
-20 |
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.
