Consumer car finance new business volumes grew by 8% in April 2024

6 June 2024

New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew in April 2024 by 8% compared with the same month in 2023. The corresponding value of new business was 7% higher over the same period.  In the first four months of 2024, new business by both value and volume fell by 1% compared with the same period in 2023. 

The consumer new car finance market reported new business by value in April 9% higher than in the same month in 2023, while new business volumes increased by 2%.  In the first four months of 2024, new business volumes in this market were 6% lower than in the same period in 2023. 

The consumer used car finance market reported the value of new business up in April by 6% compared with the same month in 2023, while new business volumes increased by 11%.  In the first four months of 2024, new business volumes in this market were 1% higher than in the same period in 2023. 

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

“The strong performance in April can in part be attributed to a shorter working month in April 2023 due to the timing of Easter. There has also been a significant improvement in consumer confidence with better news on inflation and the prospect of lower interest rates leading to greater optimism about personal finances. 

“The General Election campaigns are in full swing but for many households the key to maintaining confidence will be a reduction in interest rates in the second half of 2024.  Our latest research suggested that the point-of-sale consumer car finance market would see new business by value hold steady in 2024 at around £39 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

Apr 2024

%

 change on prev. year

3
months to Apr 2024

% change on prev. year

12 months to Apr 2024

% change on prev. year

New cars

 

 

 

 

 

 

Value of advances (£m)

1,314

9

4,646

4

16,963

1

Number of cars

48,132

2

168,567

-3

629,242

-4

Used cars

 

 

 

 

 

 

Value of advances (£m)

1,887

6

5,616

-3

21,932

-5

Number of cars

128,486

11

384,869

1

1,464,558

-4

Total cars

 

 

 

 

 

 

Value of advances (£m)

3,200

7

10,262

0

38,895

-3

Number of cars

176,618

8

553,436

0

2,093,800

-4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2: Cars bought on finance by businesses

New business

Apr 2024

%

 change on prev.

year

3

months to Apr

2024

% change on prev. year

12 months to Apr 2024

% change on prev. year

New cars

 

 

 

 

 

 

Number of cars

34,660

21

93,871

6

385,197

28

Used cars

           

Number of cars

4,715

23

13,556

9

62,384

-20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

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