cars parked

New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in March 2024 by 7% compared with the same month in 2023. The corresponding value of new business was 5% lower over the same period. In Q1 2024 as a whole, new business by value and volume fell by 3% and 4% respectively, compared with Q1 2023.

The consumer new car finance market reported new business by value in March 2% higher than in the same month in 2023, while new business volumes fell by 5%. In Q1 2024, new business volumes in this market were 8% lower than in Q1 2023.

The consumer used car finance market reported a fall in the value of new business in March of 12% compared with the same month in 2023, while new business volumes decreased by 8%. In Q1 2024, new business volumes in this market were 2% lower than in Q1 2023.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The performance of the consumer new car finance market in the first quarter of 2024 was in line with trends in private new car registrations which fell by 9%. The percentage of these sales financed by FLA members has increased in recent months to 78.9% in the twelve months to March 2024.

“The rebound in the economy demonstrated by the latest official data was reflected in the FLA’s Q2 2024 Industry Outlook Survey which showed 80% of motor finance respondents expected some improvement in economic conditions over the next 12 months. Over the same period, more than three-quarters of respondents anticipated some increase in the value of new business.”

Cars bought on finance by consumers through the point of sale

New businessMarch 2024

% change on

prev. year

3 months to

Mar 2024

% change on

prev. year

12 months to

Mar 2024

% change on

prev. year

New cars
Value of advances (£m)  2,515  2 4,438 -1 16,855 -1
Number of cars  90,449  -5 160,524 -8 628,297 -6
Used cars   
Value of advances (£m)  1,859  -12 5,760 -4 21,821 -7
Number of cars  126,776  -8 395,643 -2 1,451,905 -6
Total cars
Value of advances (£m)  4,374 -5 10,198 -3 38,675 -4
Number of cars  217,225 -7 556,167 -4 2,080,202 -6

 Cars bought on finance by businesses

New businessMarch 2024

% change on

prev. year

3 months to

Mar 2024

% change on

prev. year

12 months to

Mar 2024

% change on

prev. year

New cars
Number of cars  33,484  -14 86,791 3 379,222 29
Used cars
Number of cars 4,291  -6 13,920 -7 61,506 -23

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