Finance & Leasing Association10 May 2013
Figures published today by the Finance & Leasing Association (FLA) show another double digit increase in the number of new cars bought on finance by consumers through dealerships. In the twelve months to March 2013, the number of cars financed this way increased by 27%, and by 22% in the first quarter of this year. FLA members’ penetration of the private new car registrations market was 72.9%, up from 71.9% in February 2013.
Commenting on the figures, Paul Harrison, Head of Motor Finance at the FLA, said: “Used car finance volumes in March were relatively static with the new number plate helping to drive strong growth in private new car finance sales. Our figures again highlight how affordable finance deals are helping to bring people into car showrooms.
“Secured lending – such as hire purchase and personal contract purchase agreements – can often be provided on more attractive terms, as the risk is reduced for the lender and this is reflected in the competitive deals available to customers.”
| Table 1: Cars bought on finance by consumers through dealerships | ||||||
| Mar-13 | % change on prev. year | 3 months to Mar 2013 | % change on prev. year | 12 months to Mar 2013 | % change on prev. year | |
| New cars | ||||||
| Value of advances (£m) | 1,898 | +25 | 2,989 | +29 | 10,073 | +34 |
| Number of cars | 127,084 | +18 | 204,254 | +22 | 699,052 | +27 |
| Used cars | ||||||
| Value of advances (£m) | 689 | +2 | 2,013 | +8 | 7,413 | +8 |
| Number of cars | 73,509 | -1 | 215,958 | +4 | 796,164 | +7 |
| Table 2: Cars bought on finance by businesses | ||||||
| Mar-13 | % change on prev. year | 3 months to Mar 2013 | % change on prev. year | 12 months to Mar 2013 | % change on prev. year | |
| New cars | ||||||
| Number of cars | 37,194 | -11 | 91,062 | -2 | 394,615 | +3 |
| Used cars | ||||||
| Number of cars | 4,260 | +5 | 21,271 | +71 | 71,374 | +51 |
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.
