Continued optimism in motor finance market

6 June 2014

Figures released today by the Finance & Leasing Association (FLA) show growth of 4% in consumer new car finance volumes during April, compared with the same month last year. The used car finance market reported 9% growth in new business volumes over the same period. The annual percentage of private new car sales financed by FLA members has been stable over the past ten months at around 75%.

In the 12 months to April 2014, it was 75.0%, up slightly from 74.8% in March. Commenting, Geraldine Kilkelly, Head of Research and Chief Economist, said: “April was a quieter month for the car finance market following a strong performance in March.  Consumer car finance growth remained robust, with volumes 19% higher in the first four months of 2014 than in the same period last year.

“FLA motor finance providers are optimistic about future growth prospects.  The Q2 2014 Retail Motor Finance Survey results showed that more than 60% of respondents expected new business growth in excess of 10% in each of the new car, used car and light commercial vehicle finance markets over the next year.”

Table 1: Cars bought on finance by consumers through dealerships    
 

Apr-14

% change on prev. year

3 months to Apr 2014

% change on prev. year

12 months to Apr 2014

% change on prev. year

New cars            
Value of advances (£m)

1,073

+10

4,092

+22

12,942

+25

Number of cars

69,030

+4

266,000

+17

847,047

+18

Used cars            
Value of advances (£m)

893

+17

2,685

+26

9,558

+26

Number of cars

88,741

+9

268,213

+18

975,164

+20

 

Table 2: Cars bought on finance by businesses        
 

Apr-14

% change on prev. year

3 months to Apr 2014

% change on prev. year

12 months to Apr 2014

% change on prev. year

New cars            
Number of cars

38,634

-10

110,610

+10

416,224

+4

Used cars            
Number of cars

4,316

-9

9,803

-54

46,784

-37

Note to editors:

  1. In 2013 FLA members provided £88.9 billion of new finance to UK businesses and households. £66.5 billion of this was in the form of consumer credit, almost a third of all unsecured lending in the UK. And £27.5 billion of it supported the purchase of new and used cars, including almost three-quarters of private new car registrations.

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