New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell by 3% in September 2023 compared with the same month in 2022. The corresponding value of new business held steady over the same period. In the nine months to September 2023, new business volumes were 6% lower than in the same period in 2022.
The consumer new car finance market reported new business up 9% by value and 3% by volume in September compared with the same month in 2022. In the nine months to September 2023, new business volumes in this market were 5% lower than in the same period in 2022.
The consumer used car finance market reported a fall in new business in September of 9% by value and 7% by volume compared with the same month in 2022. In the nine months to September 2023, new business volumes in this market were 6% lower than in the same period in 2022.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The issue of a new registration plate in September gave a boost to the new car finance market with both the business and consumer sectors reporting new business growth by value and volume. The used car finance market continued to report lower levels of new business, with the consumer sector reporting a single-digit fall in volumes in line with trends seen so far in 2023.
“The economic outlook has weakened following a sustained period of high inflation and higher interest rates. Nevertheless, respondents to the FLA’s Q3 2023 Industry Outlook Survey remained optimistic about growth opportunities from supporting businesses and consumers transition to net zero.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
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