8:37 am, December 12, 2023
Business volumes in the consumer car finance sector dropped by 3% in October versus the same month last year, with the corresponding value 2% lower.
That’s according to latest figures from the Finance & Leasing Association, which added that new business volumes were 6% lower year on year for the 10 months to October 2023.
The consumer new car finance market saw business rise 1% by value in October, although it was 2% lower by volume compared with the same month in 2022.
In the 10 months to October, new business volumes in this market were 5% lower than in the same period in 2022.
Meanwhile, the consumer used car finance market reported a year-on-year fall in business of 5% by value and 4% by volume in October. Business volumes in this market over the 10 months to October were 6% lower year on year.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: ‘The consumer car finance market remains remarkably resilient despite the subdued economic outlook, with the value of new business expected to be only 4% lower in 2023 than in 2022.
‘The FLA’s latest research also suggests that the value of consumer car finance new business in 2024 is expected to grow by 2% to £40.1bn.
‘The value of new business provided to consumers for new car purchases is forecast to grow by 9% in 2024 to £18.9bn, while consumer used car finance new business by value is expected to fall by 4% in 2024 to £21.2bn.’
