Finance & Leasing Association13 February 2024
New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in December 2023 by 8% compared with the same month in 2022. The corresponding value of new business was also 8% lower over the same period. In 2023 as a whole, new business by value and volume decreased by 5% and 6% respectively, compared with 2022.
The consumer new car finance market reported a fall in new business in December of 12% by value and 13% by volume compared with the same month in 2022. In 2023 as a whole, new business volumes in this market were 6% lower than in 2022.
The consumer used car finance market reported a fall in new business in December of 5% both by value and volume compared with the same month in 2022. In 2023 as a whole, new business volumes in this market were 6% lower than 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 both the value and volume of new business in 2023. The value of new business in this market at almost £39 billion was the second highest on record.
“Consumer confidence has begun to increase as the outlook for their personal finances has improved. Nevertheless, consumer spending is expected to remain subdued this year and our latest forecasts suggest that the point of sale consumer car finance market is likely to see new business grow by around 2% in 2024.
“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 |
Dec 2023 |
% change on prev. year |
3 |
% change on prev. year |
12 months to Dec 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,001 |
-12 |
3,666 |
-5 |
16,793 |
-2 |
| Number of cars |
36,000 |
-13 |
133,595 |
-9 |
640,083 |
-6 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,252 |
-5 |
4,671 |
-6 |
22,000 |
-7 |
| Number of cars |
84,078 |
-5 |
314,111 |
-6 |
1,454,395 |
-6 |
| Total cars |
|
|
|
|
|
|
| Value of advances (£m) |
2,254 |
-8 |
8,337 |
-6 |
38,794 |
-5 |
| Number of cars |
120,078 |
-8 |
447,706 |
-7 |
2,094,478 |
-6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Dec 2023 |
% change on prev. year |
3 months to Dec 2023 |
% change on prev. year |
12 months to Dec 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
32,765 |
9 |
100,317 |
25 |
375,603 |
39 |
| Used cars |
||||||
| Number of cars |
4,560 |
22 |
16,378 |
-3 |
62,470 |
-27 |
Note to editors:
- Consumer car finance reported in these figures refers to finance obtained through the point of sale.
- 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.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
