UK's Consumer Car Finance Market Falls by 3% in June
IndraStra Global

UK's Consumer Car Finance Market Falls by 3% in June


Image Attribute: Image is for representational purpose only. / Source: Pixabay.com

On August 22, 2019, new figures released by the UK's Finance & Leasing Association (FLA) show that the point of sale (POS) consumer car finance market fell by 3% in June 2019, compared with the same month in the previous year.

The POS consumer new car finance market reported a fall in new business volumes of 5% in June compared with the same month in 2018, while the value of new business fell by 4%.

The percentage of private new car sales financed by FLA members through the POS was 91.0% in the twelve months to June 2019.

The POS consumer used car finance market reported a fall in new business volumes of 1% in June compared with the same month in 2018, while the value of new business remained at a similar level to June 2018.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “The POS consumer used car finance market reported a record total for new business volumes in the first half of the year of almost 772,000 vehicles, while the modest fall in POS consumer new car finance in the first six months of 2019 was in line with wider trends in private new car sales.”

Table 1: Cars bought on finance by consumers through dealerships
Source: Finance & Leasing Association (FLA)

Table 2: Cars bought on finance by businesses
Source: Finance & Leasing Association (FLA)

NOTE: In 2018, FLA members provided £136 billion of new finance to UK businesses and households. £103 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2018. £46 billion of it supported the purchase of new and used cars, including over 91% of private new car registrations.