Finance & Leasing Association8 July 2016
New figures released today by the Finance & Leasing Association (FLA) show that the point-of-sale (POS) consumer used car finance market saw new business grow 22% by value and 18% by volume in May, compared with the same month last year.
The POS consumer new car finance market also reported growth in May, with new business up 14% by value and 8% by volume.
The percentage of private new car sales financed by FLA members through the POS reached 84.3% in the twelve months to May, up from 83.6% in the twelve months to April.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The POS consumer car finance market continued to report robust growth in May, as new business volumes overall grew by 14% compared with the same month in 2015. New business volumes in these markets in the first five months of 2016 grew at a similar rate.”
| Table 1: Cars bought on finance by consumers through dealerships |
||||||
| New business |
May 2016 |
% change on prev. year |
3 months to May 2016 |
% change on prev. year |
12 months to May 2016 |
% change on prev. year |
| New cars |
||||||
| Value of advances (£m) |
1,385 |
+14 |
6,039 |
+16 |
17,385 |
+18 |
| Number of cars |
79,676 |
+8 |
349,658 |
+10 |
1,032,995 |
+12 |
| Used cars |
||||||
| Value of advances (£m) |
1,189 |
+22 |
3,558 |
+13 |
12,874 |
+14 |
| Number of cars |
110,031 |
+18 |
333,102 |
+10 |
1,206,679 |
+11 |
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
May 2016 |
% change on prev. year |
3 months to May 2016 |
% change on prev. year |
12 months to May 2016 |
% change on prev. year |
| New cars |
||||||
| Number of cars |
39,631 |
-13 |
150,427 |
-3 |
508,126 |
+1 |
| Used cars |
||||||
| Number of cars |
5,875 |
+73 |
12,069 |
+8 |
39,796 |
-2 |
Note to editors:
- The FLA’s response to the recent EU referendum can be found in this press release.
- In 2015, FLA members provided £110 billion of new finance to UK businesses and households. £81 billion of this was in the form of consumer credit, almost a third of total new consumer credit written in the UK in 2015. £37 billion of it supported the purchase of new and used cars, including over 80% of private new car registrations.
