Finance & Leasing Association16 January 2024
New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in November 2023 by 7% compared with the same month in 2022. The corresponding value of new business was 5% lower over the same period. In the eleven months to November 2023, new business volumes were 6% lower than in the same period in 2022.
The consumer new car finance market reported a fall in new business in November of 4% by value and 9% by volume compared with the same month in 2022. In the eleven months to November 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 November of 6% both by value and volume compared with the same month in 2022. In the eleven months to November 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 is on track to report annual new business by value and volume of £39 billion and 2.1 million cars in 2023.
“Better news on inflation and interest rates has provided more certainty for consumers, but the adverse impact of previous rises in these measures on household disposable incomes means consumer spending is likely to remain subdued in the near-term. The FLA’s Q4 2023 Industry Outlook Survey suggests that 70% of motor finance respondents, including fleet, expect some increase in new business over the next year, down from 73% in the Q3 2023 survey.
“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 |
Nov 2023 |
% change on prev. year |
3 |
% change on prev. year |
12 months to Nov 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,296 |
-4 |
4,933 |
3 |
16,949 |
-2 |
| Number of cars |
47,317 |
-9 |
183,938 |
-2 |
647,107 |
-6 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,640 |
-6 |
5,289 |
-7 |
22,110 |
-7 |
| Number of cars |
109,732 |
-6 |
352,083 |
-6 |
1,462,004 |
-6 |
| Total cars |
|
|
|
|
|
|
| Value of advances (£m) |
2,936 |
-5 |
10,222 |
-2 |
39,059 |
-5 |
| Number of cars |
157,049 |
-7 |
536,021 |
-5 |
2,109,111 |
-6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Nov 2023 |
% change on prev. year |
3 months to Nov 2023 |
% change on prev. year |
12 months to Nov 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
33,307 |
28 |
102,702 |
37 |
372,664 |
41 |
| Used cars |
||||||
| Number of cars |
5,625 |
25 |
16,220 |
-12 |
61,375 |
-29 |
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.
