Consumer car finance market falls by 3% in may

New figures released by the Finance & Leasing Association (FLA) show that point of sale (POS) consumer car finance new business volumes fell by 3% in May compared with the same month in the previous year. The value of new business fell by 1% over the same period.

New business in the POS consumer new car finance market fell 1% by value and 4% by volume in May, compared with the same month in 2018. The percentage of private new car sales financed by FLA members through the POS held steady at 91.0% in the twelve months to May 2019.

The value of POS consumer used car finance new business in May was a similar level to the same month in 2018, while new business volumes fell by 3%.

Geraldine Kilkelly, Head of Research and Chief Economist, said:

“The POS consumer car finance market reported new business volumes of almost 1.1 million in the first five months of 2019, only 1% lower than in the same period in 2018.”

“We continue to expect broadly stable new business volumes in 2019 as a whole. Consumer confidence about their own personal finances remains relatively strong, supported by a resilient labour market and low interest rate environment.”

Table 1: Cars bought on finance by consumers through dealerships    
New business May 2019 % change on prev. year 3 months to May 2019 % change on prev. year 12 months to May 2019 % change on prev. year
New cars            
Value of advances (£m) 1,591 -1 6,494 -3 19,362 0
Number of cars 74,762 -4 311,710 -5 944,785 -3
Used cars            
Value of advances (£m) 1,563 0 4,822 +4 17,968 +8
Number of cars 128,712 -3 393,417 +1 1,467,835 +3
Total cars            
Value of advances (£m) 3,154 -1 11,316 0 37,330 +4
Number of cars 203,474 -3 705,127 -2 2,412,620 +1

 

Table 2: Cars bought on finance by businesses        
New business May 2019 % change on prev. year 3 months to May 2019 % change on prev. year 12 months to May 2019 % change on prev. year
New cars            
Number of cars 39,135 -2 126,309 -3 397,772 -10
Used cars            
Number of cars 4,426 +13 15,207 -3 60,384 +4

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