New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew in February 2024 by 1% compared with the same month in 2023. The corresponding value of new business was at a similar level to February 2023. In the first two months of 2024, new business by value and volume each fell by 1% compared with the same period in 2023.
The consumer new car finance market reported new business by value in February 4% higher than in the same month in 2023, while new business volumes fell by 5%. In the first two months of 2024, new business volumes in this market were 12% lower than in the same period in 2023.
The consumer used car finance market reported a fall in the value of new business in February of 2% compared with the same month in 2023, while new business volumes increased by 2%. In the first two months of 2024, new business volumes in this market were 2% higher than in the same period in 2023.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “February saw the consumer car finance market report its first growth in new business volumes overall since October 2022, supported by another positive month for the used car finance market.
“FLA’s latest research suggests that the value of consumer car finance new business in 2024 will hold steady at £39 billion. The value of new business provided to consumers for new car purchases is forecast to grow by 5% in 2024 to £18 billion, while consumer used car finance new business by value is expected to fall by 5% in 2024 to £21 billion.”
Cars bought on finance by consumers through the point of sale
| New business | Feb 2024 |
% change on prev. year |
3 months to Feb 2024 |
% change on prev. year |
12 months to Feb 2024 |
% change on prev. year |
|---|---|---|---|---|---|---|
| New cars | ||||||
|
Value of advances (£m) |
817 |
4 | 3,012 | -4 | 16,804 | -2 |
| Number of cars | 29,986 | -5 | 108,480 | -10 | 633,133 | -6 |
| Used cars | ||||||
|
Value of advances (£m) |
1,869 |
-2 | 5,235 | 0 | 22,078 | -6 |
| Number of cars | 129,441 | 2 | 356,673 | 1 | 1,463,335 | -6 |
| Total cars | ||||||
|
Value of advances (£m) |
2,686 |
0 | 8,246 | -1 | 38,882 | -5 |
| Number of cars | 159,427 | 1 | 465,153 | -2 | 2,096,448 | -6 |
Cars bought on finance by businesses
| New business | Feb 2024 |
% change on prev. year |
3 months to Feb 2024 |
% change on prev. year |
12 months to Feb 2024 |
% change on prev. year |
|---|---|---|---|---|---|---|
| New cars | ||||||
| Number of cars | 25,730 | 23 | 87,026 | 14 | 384,839 | 36 |
| Used cars | ||||||
| Number of cars | 4,264 | 5 | 13,664 | -4 | 61,117 | -23 |
