New figures released by the Finance & Leasing Association (FLA) show that new business volumes in the consumer car finance market grew in December 2019 by 6% compared with the same month in 2018, and held steady in 2019 as a whole at over 2.4 million cars.
The consumer new car finance market reported growth in new business volumes of 4% in December 2019 compared with the same month in 2018. In 2019 as a whole, new business volumes in this market fell by 3%. The percentage of private new car sales financed by FLA members was 91.7% in the twelve months to December 2019.
The consumer used car finance market reported new business volumes up in December 2019 by 7% compared with the same month in 2018. In 2019 as a whole, new business volumes in this market grew by 2%.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The performance of the consumer car finance market in 2019 was in line with expectations. A similar performance of broadly stable new business volumes overall in 2020 is likely if we see a pick-up in consumer confidence.
“FLA members continued to set new records in 2019, with the penetration rate of consumer new car finance reaching 91.7%, and a record level of new business volumes of almost 1.5 million cars reported by the consumer used car finance market.â€
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business | Dec 2019 | % change on prev. year | 3 months to Dec 2019 | % change on prev. year | 12 months to Dec 2019 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 1,313 | 15 | 4,123 | 2 | 19,638 | 1 |
| Number of cars | 55,720 | 4 | 184,518 | -5 | 933,417 | -3 |
| Used cars | ||||||
| Value of advances (£m) | 1,177 | 11 | 4,148 | 4 | 18,374 | 4 |
| Number of cars | 90,956 | 7 | 330,058 | 2 | 1,489,929 | 2 |
| Total cars | ||||||
| Value of advances (£m) | 2,490 | 13 | 8,271 | 3 | 38,013 | 3 |
| Number of cars | 146,676 | 6 | 514,576 | -1 | 2,423,346 | 0 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Dec 2019 | % change on prev. year | 3 months to Dec 2019 | % change on prev. year | 12 months to Dec 2019 | % change on prev. year |
| New cars | ||||||
| Number of cars | 31,361 | 0 | 96,865 | -2 | 428,322 | -3 |
| Used cars | ||||||
| Number of cars | 2,999 | 0 | 11,009 | -31 | 54,999 | 6 |
*Article Source http://www.financingyourcar.org.uk
