11:11 am, August 7, 2024
The consumer car finance sector suffered an 11% year-on-year drop in new business volumes in June.
Latest figures from the Finance & Leasing Association (FLA) show that the total number of cars financed during the month stood at 167,241.
The FLA added that the value of advances for the month fell by 10% to £3.215m.
When broken down into their separate markets, the new car finance sector saw new business by value drop by 6% year on year to £1.545m, with the number of cars financed down 12% at 55,097.
The used car finance sector didn’t fare any better, with new business value down by 13% on June 2023 at £1.67m and the number of cars financed down 10% at 112,144.
The declines follow May’s 4% drop in both value and volume.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: ‘In the first half of 2024, the consumer car finance market reported a modest fall in new business despite challenging economic conditions.
‘The fall in the consumer new car finance market reflects trends in private new car sales and the shift by consumers to using salary-sacrifice schemes to finance new battery-electric vehicle purchases.
‘Our latest research suggests that the value of new business in the consumer car finance market will fall by 1% in 2024 to £38.5bn, reflecting growth of 1% in the consumer new car finance market to £17.1bn and a 3% fall in the consumer used car finance market to £21.4bn.’
