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Car finance volumes hold firm in 2019

December 2019 showed a 6% increase compared with the same month in 2018, and held steady in 2019 as a whole at over 2.4 million cars.
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February 13, 2020

NEW figures from the Finance and Leasing Association (FLA) show that new business volumes in the consumer car finance market grew in December.

The month showed a 6% increase compared with the same month in 2018, and held steady in 2019 as a whole at over 2.4 million cars.

The consumer new car finance market reported growth in new business volumes of 4% in December 2019 compared with the same month in 2018.

In 2019 as a whole, new business volumes in this market fell by 3%.  The percentage of private new car sales financed by FLA members was 91.7% in the twelve months to December 2019.

The consumer used finance market reported new business volumes up in December 2019 by 7% compared with the same month in 2018. In 2019 as a whole, new business volumes in this market grew by 2%.

Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “The performance of the consumer car finance market in 2019 was in line with expectations. A similar performance of broadly stable new business volumes overall in 2020 is likely if we see a pick-up in consumer confidence.

“FLA members continued to set new records in 2019, with the penetration rate of consumer new car finance reaching 91.7%, and a record level of new business volumes of almost 1.5 million cars reported by the consumer used car finance market.”

Table 1: Cars bought on finance by consumers through the point of sale
New business Dec 2019 % change on prev. year 3 months to Dec 2019 % change on prev. year 12 months to Dec 2019 % change on prev. year
New cars
Value of advances (£m) 1,313 15 4,123 2 19,638 1
Number of cars 55,720 4 184,518 -5 933,417 -3
Used cars
Value of advances (£m) 1,177 11 4,148 4 18,374 4
Number of cars 90,956 7 330,058 2 1,489,929 2
Total cars
Value of advances (£m) 2,490 13 8,271 3 38,013 3
Number of cars 146,676 6 514,576 -1 2,423,346 0

 

Table 2: Cars bought on finance by businesses
New business Dec 2019 % change on prev. year 3 months to Dec 2019 % change on prev. year 12 months to Dec 2019 % change on prev. year
New cars
Number of cars 31,361 0 96,865 -2 428,322 -3
Used cars
Number of cars 2,999 0 11,009 -31 54,999 6

Note to editors:

  1. Consumer motor finance reported in these figures refers to finance obtained through the point of sale.
  2. In 2019, FLA members provided £140billion of new finance to UK businesses and households. £105 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2019. £48 billion of it supported the purchase of new and used cars, including over 91% of private new car registrations.
  3. For media enquiries, please contact the FLA press office on 020 7420 9656.

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Chris Wright

Chris Wright

Chris Wright has been covering the automotive industry nationally and internationally for 30 years. Following spells with consumer titles he became News Editor of Automotive Management (AM), Editor of Automotive International, International Editor for Detroit-based Automotive News, and Editor of Dealer Update. He has also co-authored several FT Management Reports and contributes regularly to Justauto.com

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