Consumer Car Finance falls 7% in September

New figures released today by the Finance & Leasing Association (FLA) show that new business volumes in the point of sale (POS) consumer new car finance market fell by 16% in September, compared with the same month in 2017, and the value of new business was 14% lower over the same period. In Q3 2018 overall, new business fell 4% by value and 6% by volume.

The percentage of private new car sales financed by FLA members through the POS was 90.9% in the twelve months to September 2018.

The POS consumer used car finance market reported new business in September up 9% by value and 3% by volume, compared with the same month in 2017.

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

“Recent trends in the POS consumer new car finance market have reflected those for private new car sales which have been affected by changes to emission standards introduced in September.

“The POS consumer car finance market overall reported new business volumes up by 3% in the first nine months of 2018, in line with expectations of single-digit growth for the year as a whole.”

Table 1: Cars bought on finance by consumers through dealerships
New business Sep 2018 % change on prev. year 3 months to Sep 2018 % change on prev. year 12 months to Sep 2018 % change on prev. year
New cars
Value of advances (£m) 2,526 -14 4,877 -4 19,314 +2
Number of cars 123,173 -16 242,927 -6 963,771 -5
Used cars
Value of advances (£m) 1,460 +9 4,527 +12 17,184 +14
Number of cars 117,543 +3 371,010 +6 1,444,464 +8
Total cars
Value of advances (£m) 3,985 -7 9,404 +4 36,498 +7
Number of cars 240,716 -7 613,937 +1 2,408,235 +2
Table 2: Cars bought on finance by businesses
New business Sep 2018 % change on prev. year 3 months to Sep 2018 % change on prev. year 12 months to Sep 2018 % change on prev. year
New cars
Number of cars 31,301 -22 98,347 -15 431,842 -10
Used cars
Number of cars 4,515 +25 12,915 -17 55,116 -6

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