New figures released by the Finance & Leasing Association (FLA) show that new business volumes in the point of sale (POS) consumer new car finance market grew by 9% in August, compared with the same month in 2017, while the value of new business was up by 14% over the same period.
The percentage of private new car sales financed by FLA members through the POS fell slightly to 89.6% in the twelve months to August.
The POS consumer used car finance market reported new business in August up 9% by volume and 15% by value, compared with the same month last year.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“A boost to private new car sales in August ahead of changes to emission standards in September contributed to the increase in new business volumes reported by the POS consumer new car finance market. In the first eight months of 2018, new business volumes in this market were at a similar level to the same period in 2017.
“The average advance reported by the POS consumer car finance market in August was 5% higher than in the same month in 2017, in line with growth in new and used car prices over the same period.â€
| Table 1: Cars bought on finance by consumers through dealerships | ||||||
| New business | Aug 2018 | % change on prev. year |
3 months to Aug 2018 |
% change on prev. year |
12 months to Aug 2018 |
% change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 974 | +14 | 4,069 | +10 | 19,729 | +4 |
| Number of cars | 50,936 | +9 | 203,256 | +4 | 986,703 | -4 |
| Used cars | ||||||
| Value of advances (£m) | 1,542 | +15 | 4,538 | +13 | 17,043 | +14 |
| Number of cars | 127,287 | +9 | 374,261 | +7 | 1,440,465 | +8 |
| Total cars | ||||||
| Value of advances (£m) | 2,517 | +14 | 8,607 | +12 | 36,772 | +8 |
| Number of cars | 178,223 | +9 | 577,517 | +6 | 2,427,168 | +3 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Aug 2018 | % change on prev. year |
3 months to Aug 2018 |
% change on prev. year |
12 months to Aug 2018 |
% change on prev. year |
| New cars | ||||||
| Number of cars | 27,108 | -6 | 107,798 | -15 | 440,953 | -9 |
| Used cars | ||||||
| Number of cars | 4,100 | -16 | 13,578 | -18 | 54,479 | -8 |
