Consumer new car finance volumes up 15% in June

6 August 2015

New figures released today by the Finance & Leasing Association (FLA) show the number of new cars bought by consumers on finance provided through dealerships grew by 15% in June, compared with June 2014 – the strongest growth seen this year.

The percentage of private new car sales financed by FLA members through dealerships in the twelve months to June 2015 increased to a new high of 78.1%.

Point-of-sale consumer used car finance volumes also continued to grow, increasing by 7% in June compared with June 2014, and by 9% in the twelve months to June 2015.

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

“As we forecast at the beginning of the year, point-of-sale consumer car finance volumes have continued to grow in 2015, but at a slower rate than in 2014. The first half of 2015 saw growth of 8% in new business volumes compared with 17% growth in the first half of 2014.”

Table 1: Cars bought on finance by consumers through dealerships

   

New business

Jun 2015

% change on prev. year

3 months to Jun 2015

% change on prev. year

12 months to Jun 2015

% change on prev. year

New cars

           

Value of advances (£m)

1,400

+20

3,860

+16

14,984

+14

Number of cars

84,526

+15

234,114

+11

931,439

+9

Used cars

           

Value of advances (£m)

1,040

+14

3,070

+13

11,324

+14

Number of cars

97,616

+7

291,553

+8

1,090,152

+9

 

Table 2: Cars bought on finance by businesses

       

New business

Jun 2015

% change on prev. year

3 months to Jun 2015

% change on prev. year

12 months to Jun 2015

% change on prev. year

New cars

           

Number of cars

47,187

+25

145,137

+23

514,647

+16

Used cars

           

Number of cars

2,846

-23

9,408

-19

39,591

-17

Note to editors:

  1. In 2014, FLA members provided £100 billion of new finance to UK businesses and households. £74 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK last year. £32.7 billion of it supported the purchase of new and used cars, including over three-quarters of private new car registrations.

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