New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell by 3% in October 2023 compared with the same month in 2022. The corresponding value of new business was 2% lower over the same period.
In the ten months to October 2023, new business volumes remained 6% lower than in the same period in 2022.
The consumer new car finance market reported new business up 1% by value but 2% lower by volume in October compared with the same month in 2022. In the ten months to October 2023, new business volumes in this market remained 5% lower than in the same period in 2022.
The consumer used car finance market reported a fall in new business in October of 5% by value and 4% by volume compared with the same month in 2022. In the ten months to October 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 consumer car finance market remains remarkably resilient despite the subdued economic outlook, with the value of new business expected to be only 4% lower in 2023 than in 2022.
“FLA’s latest research also suggests that the value of consumer car finance new business in 2024 is expected to grow by 2% to £40.1 billion. The value of new business provided to consumers for new car purchases is forecast to grow by 9% in 2024 to £18.9 billion, while consumer used car finance new business by value is expected to fall by 4% in 2024 to £21.2 billion.”
Cars bought on finance by consumers through the point of sale
| New business | Oct 2023 | % change on prev. year | 3 months to Oct 2023 | % change on prev. year | 12 months to Oct 2023 | % change on prev. year |
|---|---|---|---|---|---|---|
| New cars | ||||||
|
Value of advances (£m) |
1,387 | 1 | 4,504 | 3 | 17,000 | -2 |
| Number of cars | 51,953 | -2 | 169,705 | -2 | 651,933 | -6 |
| Used cars | ||||||
|
Value of advances (£m) |
1,831 |
-5 | 5,571 | -8 | 22,222 | -7 |
| Number of cars | 123,390 | -4 | 369,296 | -7 | 469,574 | -5 |
| Total cars | ||||||
|
Value of advances (£m) |
3,218 |
-2 | 10,074 | -3 | 39,223 | -5 |
| Number of cars | 175,343 | -3 | 539,001 | -5 | 2,121,507 | -6 |
Cars bought on finance by businesses
| New business | Oct 2023 | % change on prev. year | 3 months to Oct 2023 | % change on prev. year | 12 months to Oct 2023 | % change on prev. year |
|---|---|---|---|---|---|---|
| New cars | ||||||
|
Number of cars |
34,123 | 41 | 99,585 | 51 | 365,350 | 40 |
| Used cars | ||||||
|
Number of cars |
5,928 |
-31 | 15,666 | -20 | 60,243 | -30 |
