Finance & Leasing Association4 April 2014
Figures released today by the Finance & Leasing Association (FLA) show growth of 26% in consumer new car finance volumes in February 2014. Over the past twelve months, the percentage of private new car sales financed by FLA members reached 75.3%, a record high.
Commenting, Paul Harrison, Head of Motor Finance at the FLA, said: “February is usually a quieter sales month ahead of the new number plate release in March, but the figures imply that some very good deals tempted consumers into the showrooms. “For the first time, FLA members funded over 75% of all private new car sales.
Against that background, the new regulatory requirement for dealers and brokers to hold an interim permission, and then apply for FCA authorisation, will need to be carefully managed by the regulator if competition and the availability of responsibly-provided credit are to be maintained in this market.”
| Table 1: Cars bought on finance by consumers through dealerships | ||||||
| Feb-14 |
% change on prev. year |
3 months to Feb 2014 |
% change on prev. year |
12 months to Feb 2014 |
% change on prev. year |
|
| New cars | ||||||
| Value of advances (£m) | 629 |
+32 |
2,233 |
+30 |
12,351 |
+27 |
| Number of cars | 42,985 |
+26 |
147,173 |
+24 |
817,190 |
+20 |
| Used cars | ||||||
| Value of advances (£m) | 826 |
+23 |
2,347 |
+30 |
9,141 |
+23 |
| Number of cars | 83,696 |
+16 |
235,762 |
+23 |
944,937 |
+18 |
| Table 2: Cars bought on finance by businesses | ||||||
| Feb-14 |
% change on prev. year |
3 months to Feb 2014 |
% change on prev. year |
12 months to Feb 2014 |
% change on prev. year |
|
| New cars | ||||||
| Number of cars | 24,926 |
+21 |
94,104 |
+14 |
410,705 |
+2 |
| Used cars | ||||||
| Number of cars | 2,639 |
-79 |
10,850 |
-48 |
48,857 |
-33 |
Note to editors:
- In 2013 FLA members provided £88.3 billion of new finance to UK businesses and households. £65.9 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.
