Demand for motor finance remains strong

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:

  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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