Consumer new car finance volumes up 7% in November

New figures released  by the Finance & Leasing Association (FLA) show that new business in the point of sale (POS) consumer new car finance market grew 13% by value and 7% by volume in November, compared with the same month in 2015.

The percentage of private new car sales financed by FLA members through the POS reached 86.8% in the twelve months to November, up from 86.4% in the twelve months to October.

The POS consumer used car finance market also reported new business growth in November of 8% by value and 5% by volume.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“The POS consumer car finance market reported overall new business volumes in the eleven months to November 2016 up by 9% compared with the same period in 2015,  in line with expectations.”

“The popularity of POS finance products like personal contract purchase, hire purchase and leasing means that the majority of finance provided to consumers for cars is secured against the vehicle.”

Table 1: Cars bought on finance by consumers through dealerships
New business Nov  2016 % change on prev. year 3 months to Nov 2016 % change on prev. year 12 months to Nov 2016 % change on prev. year
New cars
Value of advances (£m) 1,354 +13 5,575 +10 18,079 +13
Number of cars 75,231 +7 312,972 +4 1,051,012 +8
Used cars
Value of advances (£m) 1,069 +8 3,426 +9 13,503 +12
Number of cars 95,158 +5 309,870 +6 1,251,985 +10

 

Table 2: Cars bought on finance by businesses
New business Nov 2016 % change on prev. year 3 months to Nov 2016 % change on prev. year 12 months to Nov 2016 % change on prev. year
New cars
Number of cars 38,386 +13 130,609 -1 508,691 0
Used cars
Number of cars 4,596 +69 12,819 +29 45,490 +19

 

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