9 May 2014
Figures released today by the Finance & Leasing Association (FLA) show that consumer new car finance volumes were up by 21% in March compared with the same month in 2013, and by 23% in Q1 2014. The percentage of private new car sales financed by FLA members in the twelve months to March 2014 was 74.8%.
The consumer used car finance market reported its strongest growth so far in 2014, with new business volumes 29% higher in March than the same month last year. As a result, volumes were up by 24% in Q1.
Commenting, Geraldine Kilkelly, Head of research and Chief Economist at the FLA, said: “Growth in the consumer motor finance market showed no sign of weakening in March.
“Personal Contract Purchase remains the most popular finance option when consumers buy a new car from dealerships. It has also grown in popularity in the used car market, but the majority of used cars financed in the showroom are on hire purchase.”
Table 1: Cars bought on finance by consumers through dealerships | ||||||
Mar-14 |
% change on prev. year |
3 months to Mar 2014 |
% change on prev. year |
12 months to Mar 2014 |
% change on prev. year |
|
New cars | ||||||
Value of advances (£m) | 2,390 |
+26 |
3,819 |
+28 |
12,843 |
+27 |
Number of cars | 153,985 |
+21 |
250,697 |
+23 |
844,091 |
+21 |
Used cars | ||||||
Value of advances (£m) | 962 |
+39 |
2,671 |
+32 |
9,426 |
+26 |
Number of cars | 95,370 |
+29 |
269,102 |
+24 |
967,988 |
+21 |
Table 2: Cars bought on finance by businesses | ||||||
Mar-14 |
% change on prev. year |
3 months to Mar 2014 |
% change on prev. year |
12 months to Mar 2014 |
% change on prev. year |
|
New cars | ||||||
Number of cars | 47,076 |
+26 |
102,350 |
+12 |
420,329 |
+6 |
Used cars | ||||||
Number of cars | 2,920 |
-34 |
9,760 |
-55 |
47.156 |
-36 |
Note to editors:
- 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.