Finance & Leasing Association11 July 2014
Figures released today by the Finance & Leasing Association (FLA) show consumer new car finance volumes grew by 8% in May 2014.
The more modest growth reported by FLA members in recent months mirrors the level of private new car sales. The percentage of private new car sales financed by FLA members in the twelve months to May 2014 held steady at 75%.
Consumer used car finance volumes increased by 10% compared with May last year, and remained 18% higher in the first five months of 2014 than in the same period in 2013.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist, said:
“It’s been a quieter couple of months in the motor finance market, but FLA members remain optimistic, and expect new business growth of more than 10% in the new and used car finance markets over the next twelve months.”
| Table 1: Cars bought on finance by consumers through dealerships |
|
|
||||
| May-14 |
% change on prev. year |
3 months to May 2014 |
% change on prev. year |
12 months to May 2014 |
% change on prev. year |
|
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,105 |
+16 |
4,568 |
+19 |
13,092 |
+24 |
| Number of cars |
69,423 |
+8 |
292,438 |
+14 |
852,195 |
+17 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
904 |
+18 |
2,759 |
+24 |
9,699 |
+25 |
| Number of cars |
89,532 |
+10 |
273,643 |
+16 |
983,586 |
+19 |
| Table 2: Cars bought on finance by businesses |
|
|
|
|
||
| May-14 |
% change on prev. year |
3 months to May 2014 |
% change on prev. year |
12 months to May 2014 |
% change on prev. year |
|
| New cars |
|
|
|
|
|
|
| Number of cars |
37,515 |
+7 |
123,225 |
+7 |
418,604 |
+7 |
| Used cars |
|
|
|
|
|
|
| Number of cars |
3,264 |
-11 |
10,500 |
-18 |
46,395 |
-35 |
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.
