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Volumes for new and used car sales fell during August, compared with the same month in 2018, in the point of sale (POS) consumer new car finance market, the UK’s Finance & Leasing Association reports.

While the number of new cars financed fell 2%, the total value of finance grew 2%, in part because consumers are opting for larger, more expensive vehicles, such as SUVs.

The percentage of private new car sales financed by FLA members through the POS remained at 91.2% in the 12 months to August 2019.

The value of advances fell 1% in the POS consumer used car finance market, while volumes were down 2%. Until recently, the used car market has been an important driver of growth in the market as demand for new vehicles has been falling.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The POS consumer new car finance market reported a modest fall in new business volumes in August, as the market continued to track private new car sales.

“New business volumes in the POS consumer car finance market overall fell by 1% in the eight months to August, in line with expectations.”

Cars bought on finance by consumers through the point of sale

New businessAugust 2019

% change on

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3 mths to

August 2019

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12 mths to

August 2019

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New cars
Value of advances (£m)

991 

+2 4,070 0 19,364 -2
Number of cars 49,762 -2 198,734 -2 940,281 -5
Used cars
Value of advances (£m) 1.524 -1 4.633 +2 18,057 +5
Number of cars 125.497 -2 379,467 +1 1.472.739 +2
Total cars
Value of advances (£m) 2,515 0 8,703 +1 37,420 +2
Number of cars 175,259 -2 578,201 0 2,413,020 -1

Source: FLA