Finance & Leasing Association6 June 2013
New figures released today by the Finance & Leasing Association (FLA) show the strongest growth for more than two years in the number of used cars bought by consumers on finance at dealerships. In April, new business grew 26% by value and 22% by volume compared with April 2012 The consumer new car finance market remained buoyant in April with volumes up 37% compared with the same month a year earlier. FLA members’ penetration of the private new car registrations market in the twelve months to April 2013 hit 73.2%, a new record.
Commenting on the figures, Paul Harrison, Head of Motor Finance at the FLA, said: “April was a strong month with consumers and businesses using new and used car finance to fund their next vehicle purchase.
“The two year high in private used car finance could be attributed to customers returning to that market following the release of the new car number plate the previous month. Forecourt deals are competitive and customers are obviously finding what they’re after.”
| Table 1: Cars bought on finance by consumers through dealerships | ||||||
| Apr-13 | % change on prev. year | 3 months to Apr 2013 | % change on prev. year | 12 months to Apr 2013 | % change on prev. year | |
| New cars | ||||||
| Value of advances (£m) | 974 | +42 | 3,350 | +32 | 10,359 | +35 |
| Number of cars | 66,074 | +37 | 227,153 | +25 | 716,889 | +28 |
| Used cars | ||||||
| Value of advances (£m) | 756 | +26 | 2,111 | +13 | 7,569 | +9 |
| Number of cars | 81,029 | +22 | 226,082 | +9 | 810,953 | +7 |
| Table 2: Cars bought on finance by businesses | ||||||
| Apr-13 | % change on prev. year | 3 months to Apr 2013 | % change on prev. year | 12 months to Apr 2013 | % change on prev. year | |
| New cars | ||||||
| Number of cars | 42,293 | +4 | 99,872 | -3 | 396,380 | +1 |
| Used cars | ||||||
| Number of cars | 4,577 | +25 | 20,995 | +72 | 72,286 | +55 |
Note to editors:
- In 2012 FLA members provided £76.4 billion of new finance to UK businesses and households. £54.9 billion of this was in the form of consumer credit, 30% of all unsecured lending in the UK. And £23.3 billion of it supported the purchase of new and used cars, including more than 70% of private new car registrations.
