The most recent new plate day failed to spark life into the consumer finance market, new data has suggested.
Figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell by three per cent year-0n-year in the ninth month of the year.
Meanwhile, in the nine months to the end of September, new business volumes were down six per cent on the same point last year.
Elsewhere, in the used sector, consumer used car finance saw new business volume fall by nine per cent in September. The market also experienced a seven per cent dip in volume.
In the year to date, new business volumes in the used market were six per cent lower than in the same period in 2022, according to the FLA.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: ‘The issue of a new registration plate in September gave a boost to the new car finance market with both the business and consumer sectors reporting new business growth by value and volume.
‘The used car finance market continued to report lower levels of new business, with the consumer sector reporting a single-digit fall in volumes in line with trends seen so far in 2023.
‘The economic outlook has weakened following a sustained period of high inflation and higher interest rates.
‘Nevertheless, respondents to the FLA’s Q3 2023 Industry Outlook Survey remained optimistic about growth opportunities from supporting businesses and consumers transition to net zero.
‘As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.’