8:40 am, February 14, 2024
LATEST figures from the Finance & Leasing Association show that consumer car finance new business value and volume dropped by 5% and 6% respectively last year versus 2022.
It said the number of cars bought on finance via the point of sale in 2023 totalled 2,094,478, with the value put at £38.794bn – but it was still the second highest value on record.
Meanwhile, new business volumes fell in December by 8% to 120,078 versus the same month in 2022. The corresponding value of new business was also 8% lower over the same period at £2.254bn.
The consumer new car finance market reported a fall in new business in December of 12% by value (£1.001bn) and 13% by volume (36,000 cars) compared with the same month in 2022. In 2023 as a whole, new business volumes in this market were 6% lower than in 2022 (640,083 cars).
The consumer used car finance market reported a fall in new business in December of 5% both by value (£1.252bn) and volume (84,078 cars) versus the same month in 2022. In 2023 as a whole, new business volumes in this market were 6% lower than in 2022 (1,454,395 cars).
FLA chief economist and director of research Geraldine Kilkelly said: ‘The consumer car finance market reported a modest fall in both the value and volume of new business in 2023.
‘The value of new business in the consumer car finance market at almost £39bn was the second highest on record.
‘Consumer confidence has begun to increase as the outlook for their personal finances has improved.
‘Nevertheless, consumer spending is expected to remain subdued this year and our latest forecasts suggest that the point-of-sale consumer car finance market is likely to see new business grow by around 2% in 2024.’
