cars

Rising demand for used car finance failed to offset the impact of falling new car sales last year, with total new business volumes falling in November 2019, according to new figures from the Finance and Leasing Association.

FLA figures show new business volumes in the consumer car finance market fell in 1% in November compared with the same month in 2018 and remained static in the 11 months to the end of November 2019.

The consumer used car finance market reported a year-on-year increase in new business volumes of 3% during the month.

However, the consumer new car finance market reported a fall in new business volumes of 8% over the same period.

The percentage of private new car sales financed by FLA members was 91.2% in the 12 months to November 2019.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The consumer used car finance market is poised for a record level of new business volumes in 2019 of almost 1.5 million cars, 2% higher than in 2018.

“Further single-digit growth in this market is likely in 2020 with recent survey data suggesting a pick-up in consumer confidence about the economic outlook, personal finances and committing to big-ticket purchases.”

Cars bought on finance by consumers through the point of sale

New businessNov 2019 

% change on

prev. year

3 months to

Nov 2019

% change on

prev. year

12 months to

Nov 2019

% change on

prev. year

New cars
Value of advances (£m) 1,394  -1 5,440 0 19,385 0
Number of cars 62,474 -8  250,854 -5 928,049 -4
Used cars
Value of advances (£m) 1,389 3 4,612 5 18,263 4
Number of cars 111,049 3 367,820 3 1,484,254 2
Total cars
Value of advances (£m) 2,783 1 10,051 2 37,648 2
Number of cars 173,523 -1 618,674 0 2,412,303 0

Demand for new and used auto finance at point of sale (UK): November 2010 - 2019

new used car finance 2019

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