12:11 pm, June 7, 2024
The value of consumer car finance new business at the point of sale grew to more than £3.2bn in April versus the same month in 2023, according to latest official figures.
The Finance & Leasing Association (FLA) said a total of 176,818 cars were bought on finance via its members during the month – an increase of 8%.
The corresponding value of new business was 7% higher over the same period, rising to £3.201bn.
The consumer new car finance market’s new business by value at the point of sale was £1.314bn – 9% higher than in April 2023 – while new business volumes rose by 2% to 48,132.
Meanwhile, the consumer used car finance market reported the value of new business at the point of sale as increasing in April by 6% year on year to £1.887bn, while new business volumes increased by 11% to 128,486.
Geraldine Kilkelly, the FLA’s director of research and chief economist, said: ‘The strong performance in April can in part be attributed to a shorter working month in April 2023 due to the timing of Easter.
‘There has also been a significant improvement in consumer confidence, with better news on inflation and the prospect of lower interest rates leading to greater optimism about personal finances.’
She added: ‘The general election campaigns are in full swing, but for many households the key to maintaining confidence will be a reduction in interest rates in the second half of 2024.
‘Our latest research suggested that the point-of-sale consumer car finance market would see new business by value hold steady in 2024 at around £39bn.’
