Finance & Leasing Association9 April 2024
New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew in February 2024 by 1% compared with the same month in 2023. The corresponding value of new business was at a similar level to February 2023. In the first two months of 2024, new business by value and volume each fell by 1% compared with the same period in 2023.
The consumer new car finance market reported new business by value in February 4% higher than in the same month in 2023, while new business volumes fell by 5%. In the first two months of 2024, new business volumes in this market were 12% lower than in the same period in 2023.
The consumer used car finance market reported a fall in the value of new business in February of 2% compared with the same month in 2023, while new business volumes increased by 2%. In the first two months of 2024, new business volumes in this market were 2% higher than in the same period in 2023.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“February saw the consumer car finance market report its first growth in new business volumes overall since October 2022, supported by another positive month for the used car finance market.
“FLA’s latest research suggests that the value of consumer car finance new business in 2024 will hold steady at £39 billion. The value of new business provided to consumers for new car purchases is forecast to grow by 5% in 2024 to £18 billion, while consumer used car finance new business by value is expected to fall by 5% in 2024 to £21 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 |
Feb 2024 |
% change on prev. year |
3 |
% change on prev. year |
12 months to Feb 2024 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
817 |
4 |
3,012 |
-4 |
16,804 |
-2 |
| Number of cars |
29,986 |
-5 |
108,480 |
-10 |
633,113 |
-6 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,869 |
-2 |
5,235 |
0 |
22,078 |
-6 |
| Number of cars |
129,441 |
2 |
356,673 |
1 |
1,463,335 |
-6 |
| Total cars |
|
|
|
|
|
|
| Value of advances (£m) |
2,686 |
0 |
8,246 |
-1 |
38,882 |
-5 |
| Number of cars |
159,427 |
1 |
465,153 |
-2 |
2,096,448 |
-6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Feb 2024 |
% change on prev. year |
3 months to Feb 2024 |
% change on prev. year |
12 months to Feb 2024 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
25,730 |
23 |
87,026 |
14 |
384,839 |
36 |
| Used cars |
||||||
| Number of cars |
4,264 |
5 |
13,664 |
-4 |
61,117 |
-23 |
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.
