10:05 am, March 11, 2024
Consumer car finance new business fell by 3% in volume and value in January versus the same month last year, according to latest figures from the Finance & Leasing Association.
Meanwhile, in the year to January 2024, new business value and volume dropped by 5% and 6% respectively, compared with the same period in 2023.
The consumer new car finance market reported a decrease in new business in January of 9% by value and 16% by volume versus January 2023, while in the 12 months to January 2024, new business volumes were 6% lower than in the same period over the preceding 12 months and 2% lower by value.
However, the consumer used car finance market enjoyed a growth in new business in January of 1% by both value and volume compared with the same month in 2023, while in the 12 months to January 2024, new business volumes were 6% lower than in the same period in 2023 and 7% lower by value.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: ‘January saw the consumer used car finance market report its first growth in new business volumes in a year, and a second consecutive month of growth in the value of new business.
‘By contrast, the weakness in the consumer new car finance market reflects the shift from retail to fleet new car sales as consumers opt for obtaining electric vehicles through salary sacrifice schemes.’
She added: ‘In the near term, consumer spending growth is likely to remain subdued despite an improved outlook for real household disposable incomes.
‘The consumer car finance market is expected to grow by 2% in 2024 to reach just over £40bn.’
