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Consumer car finance market falls by 3% in may

Consumer car finance market falls by 3% in may
New figures released by the Finance & Leasing Association (FLA) show that point of sale (POS) consumer car finance new business volumes fell by 3% in May compared with the same month in the previous year. The value of new business fell by 1% over the same period.

New business in the POS consumer new car finance market fell 1% by value and 4% by volume in May, compared with the same month in 2018. The percentage of private new car sales financed by FLA members through the POS held steady at 91.0% in the twelve months to May 2019.

The value of POS consumer used car finance new business in May was a similar level to the same month in 2018, while new business volumes fell by 3%.

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

“The POS consumer car finance market reported new business volumes of almost 1.1 million in the first five months of 2019, only 1% lower than in the same period in 2018.”

“We continue to expect broadly stable new business volumes in 2019 as a whole. Consumer confidence about their own personal finances remains relatively strong, supported by a resilient labour market and low interest rate environment.”

Table 1: Cars bought on finance by consumers through dealerships

 

 

New business

May 2019

% change on prev. year

3 months to May 2019

% change on prev. year

12 months to May 2019

% change on prev. year

New cars

 

 

 

 

 

 

Value of advances (£m)

1,591

-1

6,494

-3

19,362

0

Number of cars

74,762

-4

311,710

-5

944,785

-3

Used cars

 

 

 

 

 

 

Value of advances (£m)

1,563

0

4,822

+4

17,968

+8

Number of cars

128,712

-3

393,417

+1

1,467,835

+3

Total cars

 

 

 

 

 

 

Value of advances (£m)

3,154

-1

11,316

0

37,330

+4

Number of cars

203,474

-3

705,127

-2

2,412,620

+1

 

Table 2: Cars bought on finance by businesses

 

 

 

 

New business

May 2019

% change on prev. year

3 months to May 2019

% change on prev. year

12 months to May 2019

% change on prev. year

New cars

 

 

 

 

 

 

Number of cars

39,135

-2

126,309

-3

397,772

-10

Used cars

 

 

 

 

 

 

Number of cars

4,426

+13

15,207

-3

60,384

+4