8:18 am, March 10, 2023
Consumer car finance new business volumes fell in January by three per cent versus the same month last year, latest figures from the Finance & Leasing Association show.
The corresponding value of new business fell by five per cent over the same period.
In the 12 months to this January, new business grew by five per cent by value and held steady by volume compared with the same period in 2022.
New business in the consumer new car finance market fell by six per cent by value and 10 per cent by volume in January versus January 2022.
The 12 months to January 2023 saw new business volumes in this market also decrease by 10 per cent compared with the same period last year.
Meanwhile, new business volumes for January in the consumer used car finance market were at a similar level to January 2022, while the value of new business fell by four per cent over the same period.
In the 12 months to January 2023, new business volumes in this market went up by four per cent versus the same period in 2022.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: ‘The consumer car finance market reported a modest fall in new business in January.
‘In the first half of 2023, household expenditure is likely to remain relatively weak as pressures on household incomes from high inflation and higher interest rates and taxes continue.
‘But we should see a further easing of supply shortages in the new car market as the year progresses.’
She added: ‘The FLA’s latest research suggests that the value of consumer car finance new business is likely to contract by six per cent in 2023 to £38bn.’
The FLA told Car Dealer the figure was a rounded-down total of the values of new business for new and used cars, with the former predicted to rise by four per cent to just under £18bn but the latter forecast to fall by 12 per cent to just under £21bn.
