Strong performance from motor finance market in September

7 November 2013

New figures released today by the Finance & Leasing Association (FLA) show the number of new cars bought by consumers using dealer finance in September 2013 grew by 19% compared with the same month in 2012. The penetration rate of FLA members in the twelve months to September 2013 was 74.2%, slightly lower than the rate of 74.5% recorded in August. September saw the consumer used car finance market report its strongest growth in new business volumes so far in 2013 at 23%, with hire purchase (HP) still the most popular option in this market.

Commenting, Paul Harrison, Head of Motor Finance at the FLA said: “The strong figures show many customers’ preference for point-of-sale credit, a fact which was borne out in debate at the FLA’s Future of Consumer Credit Regulation conference, yesterday.

“Those attending the conference felt strongly that it was vital to maintain the availability of responsibly-provided credit, and to avoid any adverse impact of the new rules on credit intermediaries.”

Table 1: Cars bought on finance by consumers through dealerships    
  Sep-13 % change on prev. year 3 months to Sep 2013 % change on prev. year 12 months to Sep 2013 % change on prev. year
New cars            
Value of advances (£m) 1,967 +29 3,462 +30 11,617 +32
Number of cars 127,570 +19 227,783 +20 782,259 +25
Used cars            
Value of advances (£m) 777 +27 2,301 +24 8,263 +17
Number of cars 80,025 +23 239,916 +19 871,658 +13

 

Table 2: Cars bought on finance by businesses        
  Sep-13 % change on prev. year 3 months to Sep 2013 % change on prev. year 12 months to Sep 2013 % change on prev. year
New cars            
Number of cars 34,308 -2 95,349 -1 395,191 0
Used cars            
Number of cars 3,422 +9 12,457 +10 64,189 +12

Note to editors:

  1. In 2012 FLA members provided £80.2 billion of new finance to UK businesses and households. £58.8 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.

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