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.