10:00 am, November 8, 2024
Consumer car finance business volumes and value both rose in September, latest figures show.
The Finance & Leasing Association (FLA) said that new business volumes grew by 4% to 212,247 cars versus September 2023. Meanwhile, the corresponding value of new business rose by 8% to £4.407m over the same period.
Despite this, new business volumes in the first nine months the year overall remained 2% lower than 2023.
The consumer new car finance market reported new business by value in September 16% higher than in the same month in 2023, while new business volumes grew by 8%
In the nine months to September 2024, new business volumes in the market were 3% lower than in the same period in 2023.
The consumer used car finance market reported a fall in the value of new business in September of 1% compared with the same month in 2023, while new business volumes grew by 1%.
In the nine months to September 2024, new business volumes in this market were 1% lower than in the same period in 2023.
The figures only cover the first nine months of the year and do not take into account the recent crisis in the automotive finance industry, which came as a result of a landmark Court of Appeal ruling, published on October 25.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: ‘Overall, the consumer car finance market reported growth in both the value and volume of new business in September which saw the issue of a new registration plate.
‘In Q3 2024 as a whole, new business volumes in this market were 1% higher than the same quarter in 2023.
‘The consumer car finance market is the largest of the UK consumer credit markets accounting for 36% of the total value of outstanding consumer credit contracts at the end of September 2024.
‘It currently helps more than six million consumers fund car purchases across all regions of the UK.
‘As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.’
