cars

New business in the UK point of sale (POS) consumer new car finance market grew 3% last year, despite customers funding fewer vehicles.

According to the Finance and Leasing Association, the number of new cars financed by its members fell 3% to 960,000, reflecting a fall in the overall UK new car market, but the amount advanced rose to more than £19.3 billion.

The percentage of private new car sales financed by FLA members through the POS was 91.2% in the 12 months to December last year.

The average amount financed for new cars also reached a new high in December at £21,239.

The used car market saw substantial increases in vehicle volumes and the value of finance.

During 2018, the value of used car advances rose 13% to nearly £17.6 billion and volumes neared 1.5 million, a rise of 7% year-on-year.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The POS consumer car finance market grew in 2018 in line with expectations, with new business volumes 3% higher than in 2017.

“The market is likely to report stable new business volumes in 2019 as a whole if there is a reduction in the current uncertainty about the economic outlook.”

Cars bought on finance by consumers through dealerships

 

New businessDec 18

% change on

prev yr

3 mths to

Dec 18

% change on

prev yr

12 mths to

Dec 18

% change on

prev yr

New cars
Value of advances (£m) 1,135 0 4,028 +2 19,384 +3
Number of cars 53,439 -4 193,352 -1 959,729 -3
Used cars
Value of advances (£m) 1,060 +9 4,005 +10 17,571 +13
Number of cars 84,907 +5 323,543 +5 1,459,136 +7
Total cars
Value of advances (£m) 2,195 +4 8,032 +6 36,955 +7
Number of cars 138,346 +1 516,895 +2 2,418,865 +3

UK POS car finance market - Average amount financed

uk pos car finance

Demand for new and used auto finance at point of sale (UK) - 2010-2018

demand for new and used