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New business volumes in consumer car market increase by 20 per cent

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Time 8:40 am, October 11, 2013

UnknownNEW figures released by the Finance and Leasing Association (FLA) have revealed that new business volumes in the consumer new car market increased by 20 per cent in August.

Looking at used cars, results show that volumes were 17 per cent higher than the same month last year.

According to the FLA, the month was also a particularly strong month for personal contract purchase agreements, which grew by 54 per cent in value to £432m in the new car finance market and by 46 per cent to £198m in the used car finance market.


On the other hand, when taking a closer look at hire purchases, there was quite a contrast. Hire purchases in the new car market grew by just 1 per cent to £124m, while the used car market saw growth of 21 per cent to £485m.

Meanwhile, FLA member’s penetration of the private new car registrations market was up marginally to 74.5 per cent from 74.1 per cent in July.

Overall, the number of new cars bought on finance in the 12 months from August 2012 to 2013 totals at 761,497, while the number of used cars overtakes this figure with a 856,809 vehicles sold on finance.


Head of motor finance at the FLA, Paul Harrison, said: ‘The increase in the proportion of sales using products like personal contact purchase shows that many customers are sensibly choosing to finance their purchases in a way which is both affordable and flexible.

‘Credit options like PCP are proving popular as customers benefit from fixed monthly repayments and can decide at the end of the deal if they wish to own or return the car.’

He added: ‘These finance deals are secured against the car itself which means greater protection for consumers and lenders.’

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Car Dealer has been covering the motor trade since 2008 as both a print and digital publication. In 2020 the title went fully digital and now provides daily motoring updates on this website for the car industry. A digital magazine is published once a month.



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