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Consumer car finance market holds steady in 2019

Consumer car finance market holds steady in 2019
New figures released by the Finance & Leasing Association (FLA) show that new business volumes in the consumer car finance market grew in December 2019 by 6% compared with the same month in 2018, and held steady in 2019 as a whole at over 2.4 million cars.

The consumer new car finance market reported growth in new business volumes of 4% in December 2019 compared with the same month in 2018.  In 2019 as a whole, new business volumes in this market fell by 3%.  The percentage of private new car sales financed by FLA members was 91.7% in the twelve months to December 2019.

The consumer used car finance market reported new business volumes up in December 2019 by 7% compared with the same month in 2018. In 2019 as a whole, new business volumes in this market grew by 2%.

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

“The performance of the consumer car finance market in 2019 was in line with expectations. A similar performance of broadly stable new business volumes overall in 2020 is likely if we see a pick-up in consumer confidence.

“FLA members continued to set new records in 2019, with the penetration rate of consumer new car finance reaching 91.7%, and a record level of new business volumes of almost 1.5 million cars reported by the consumer used car finance market.”

Table 1: Cars bought on finance by consumers through the point of sale

New business

Dec 2019

% change on prev. year

3 months to Dec 2019

% change on prev. year

12 months to Dec 2019

% change on prev. year

New cars

Value of advances (£m)

1,313

15

4,123

2

19,638

1

Number of cars

55,720

4

184,518

-5

933,417

-3

Used cars

Value of advances (£m)

1,177

11

4,148

4

18,374

4

Number of cars

90,956

7

330,058

2

1,489,929

2

Total cars

Value of advances (£m)

2,490

13

8,271

3

38,013

3

Number of cars

146,676

6

514,576

-1

2,423,346

0

 

Table 2: Cars bought on finance by businesses

New business

Dec 2019

% change on prev. year

3 months to Dec 2019

% change on prev. year

12 months to Dec 2019

% change on prev. year

New cars

Number of cars

31,361

0

96,865

-2

428,322

-3

Used cars

Number of cars

2,999

0

11,009

-31

54,999

6

 

*Article Source http://www.financingyourcar.org.uk