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Consumer car finance market falls by 1% in March

Consumer car finance market falls by 1% in March
New figures released by the Finance & Leasing Association (FLA) show that new business in the point of sale (POS) consumer car finance market fell 1% by volume in March, compared with the same month in 2018. The corresponding value of new business was at a similar level to March 2018.

The POS consumer new car finance market reported a fall in new business in March of 3% by value and 5% by volume, compared with the same month in 2018.

The percentage of private new car sales financed by FLA members through the POS was 90.9% in the twelve months to March, down from 91.1% in the same period to February.

The POS consumer used car finance market reported new business up 9% by value in March, while volumes grew by 4%, compared with the same month in 2018.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“The POS consumer car finance market reported new business volumes stable in the first quarter of 2019, with a fall of 2% in the new car finance market offset by growth of 2% in the used car finance market.

“The Q1 2019 performance reflects our expectations for the year as a whole, with annual new business volumes of around 2.4 million, a similar level to 2018.”

 

 

Table 1: Cars bought on finance by consumers through dealerships

New business

Mar 2019

% change on prev. year

3 months to Mar 2019

% change on prev. year

12 months to Mar 2019

% change on prev. year

New cars

           

Value of advances (£m)

3,300

-3

5,546

0

19,416

+4

Number of cars

160,906

-5

274,218

-2

954,073

0

Used cars

           

Value of advances (£m)

1,627

+9

4,763

+7

17,902

+11

Number of cars

130,632

+4

389,275

+2

1,470,442

+6

Total cars

           

Value of advances (£m)

4,927

0

10,309

+3

37,318

+7

Number of cars

291,538

-1

663,493

0

2,424,515

+4

 

Table 2: Cars bought on finance       by businesses

New business

Mar 2019

% change on prev. year

3 months to Mar 2019

% change on prev. year

12 months
to Mar 2019

% change on prev. year

New cars

           

Number of cars

43,143

-6

90,184

-7

389,878

-12

Used cars

           

Number of cars

7,630

-6

21,388

+30

64,826

+12