10:57 am, September 13, 2024
Consumer car finance business volumes and value both rose in July, latest figures show.
The Finance & Leasing Association (FLA) said that new business volumes grew by 1% to 175,696 cars versus July 2023. Meanwhile, the corresponding value of new business rose by 2% to £3.266m over the same period.
Business by value for the new car finance market in July was 5% higher at £1.388m, but business volumes fell by 3% to 48,673 cars.
The consumer used car finance market reported a drop in the value of new business in July of 1% to £1.878m versus July 2023, while business volumes grew by 3% to 127,023 cars.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: ‘The consumer car finance market made a positive start to the third quarter of 2024 with modest growth in both the value and volume of new business in July.
‘Consumers’ optimism about the outlook for their personal finances and committing to big-ticket purchases has greatly improved in recent months off the back of better news on inflation and interest rates.
‘We expect the value of new business overall in the consumer car finance market to be slightly lower in 2024 than in 2023, with growth of 1% in the consumer new car finance market offset by a 3% fall in the consumer used car finance market.’
