Consumer car finance market up by 9% in May says FLA

Friday, 6 July 2018 09:25

New figures released today by the Finance & Leasing Association (FLA) show that new business in the point of sale (POS) consumer new car finance market grew 15% by value and 10% by volume in May, compared with the same month in 2017. The percentage of private new car sales financed by FLA members through the POS was 89.3% in the twelve months to May 2018, unchanged compared with the same period to April 2018. The POS consumer used car finance market also reported new...Request free trial

The percentage of private new car sales financed by FLA members through the POS was 89.3% in the twelve months to May 2018, unchanged compared with the same period to April 2018.

The POS consumer used car finance market also reported new business growth in May 2018 of 12% by value and 9% by volume.

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

“Monthly falls in new business volumes reported by the consumer new car finance market in the first three months of 2018 have been followed by a recovery in April and May, in line with demand for new car purchases.

“The POS consumer car finance market reported new business volumes overall up by 4% in the first five months of 2018, consistent with expectations for the year as a whole.”

Table 1: Cars bought on finance by consumers through dealerships
New business	May 2018	% change on prev. year	3 months to May 2018	% change on prev. year	12 months to May 2018	% change on prev. year
New cars
Value of advances (£m)	1,615	+15	6,657	+5	19,337	+3
Number of cars	78,158	+10	329,303	-1	977,508	-6
Used cars
Value of advances (£m)	1,552	+12	4,578	+13	16,370	+13
Number of cars	131,389	+9	387,565	+8	1,408,064	+8
Total cars
Value of advances (£m)	3,166	+13	11,236	+8	35,707	+7
Number of cars	209,547	+9	716,868	+3	2,385,572	+1

Table 2: Cars bought on finance by businesses
New business	May 2018	% change on prev. year	3 months to May 2018	% change on prev. year	12 months to May 2018	% change on prev. year
New cars
Number of cars	40,826	-2	132,595	-4	461,482	-4
Used cars
Number of cars	4,369	+35	17,398	+52	63,646	+15

Note to editors:

1. In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2017. £44 billion of it supported the purchase of new and used cars, including over 88% of private new car registrations.