car showroom

The UK new car finance market powered to a new monthly high for April, latest figures from the Finance & Leasing Association (FLA) show.

New business in the point of sale (POS) consumer new car finance market grew 31% by value and 27% by volume in April, compared with the same month last year, when market growth dipped substantially.

The percentage of private new car sales financed by FLA members through the POS was 89.7% in the 12 months to April 2018.

The POS consumer used car finance market also reported new business growth in April of 28% by value and 20% by volume.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “These figures partly reflect a relatively subdued April last year.

“Trends in the new car finance market in 2018 so far have been affected by the pattern of demand for private new cars over the same period last year, when car purchases were brought forward into the first quarter prior to vehicle excise duty changes in April.

“The POS consumer car finance market overall reported new business volumes up in the first four months of 2018 by 4% compared with the same period in 2017, in line with expectations of modest single-digit growth in 2018 as a whole.”

The figures also reveal that the average amount financed, based on total monthly funding divided by the number of vehicles financed, also reached a new high.

UK POS finance 2010-2018

uk pos finance 2010 18

Cars bought on finance by consumers through dealerships

New businessApril 2018

% change on

prev yr

3 mths to

April 18

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12 mths to

April 18

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New cars
Value of advances (£m) 1,606 +31 5,883 +2 18,962 +1
Number of cars 81,734 +27 300,464 -4 974,659 -8
Used cars
Value of advances (£m) 1,569 +28 4,474 +15 16,282 +14
Number of cars 134,159 +20 383,666 +10 1,406,333 +8
Total cars
Value of advances (£m) 3,174 +29 10,357 +7 35,244 +6
Number of cars 215,893 +23 684,130 +3 380,992 +1

Cars bought on finance by businesses

New businessApril 2018

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3 mths to

April 18

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12 mths to

April 18

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New cars
Number of cars 44,575 +10 118,923 -6 462,403 -3
Used cars
Number of cars 4,159 +35 16,857 +41 62,518 +7