Consumer car finance new business volumes grew by 1% in July 2024
New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew in July 2024 by 1% compared with the same month in 2023. The corresponding value of new business increased by 2% over the same period. In the seven months to July 2024, new business was 2% lower by value and 3% lower by volume compared with the same period in 2023.
The consumer new car finance market reported new business by value in July 5% higher than in the same month in 2023, while new business volumes fell by 3%. In the seven months to July 2024, new business volumes in this market were 7% lower than in the same period in 2023.
The consumer used car finance market reported a fall in the value of new business in July of 1% compared with the same month in 2023, while new business volumes grew by 3%. In the seven months to July 2024, new business volumes in this market were 1% lower than in the same period in 2023.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The consumer car finance market made a positive start to the third quarter of 2024 with modest growth in both the value and volume of new business in July. Consumers’ optimism about the outlook for their personal finances and committing to big-ticket purchases has greatly improved in recent months off the back of better news on inflation and interest rates.
“We expect the value of new business overall in the consumer car finance market to be slightly lower in 2024 than in 2023, with growth of 1% in the consumer new car finance market offset by a 3% fall in the consumer used car finance market.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business | Jul 2024 | %
change on prev. year |
3 months to Jul 2024 |
% change on prev. year | 12 months to Jul 2024 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 1,388 | 5 | 4,326 | 0 | 16,948 | 1 |
| Number of cars | 48,673 | -3 | 153,814 | -8 | 616,222 | -6 |
| Used cars | ||||||
| Value of advances (£m) | 1,878 | -1 | 5,379 | -7 | 21,523 | -5 |
| Number of cars | 127,023 | 3 | 363,480 | -3 | 1,451,833 | -3 |
| Total cars | ||||||
| Value of advances (£m) | 3,266 | 2 | 9,705 | -4 | 38,470 | -3 |
| Number of cars | 175,696 | 1 | 517,294 | -5 | 2,068,055 | -4 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Jul 2024 | %
change on prev. year |
3
months to Jul 2024 |
% change on prev. year | 12 months to Jul 2024 | % change on prev. year |
| New cars | ||||||
| Number of cars | 27,388 | -8 | 85,819 | -11 | 371,257 | 12 |
| Used cars | ||||||
| Number of cars | 8,019 | 27 | 17,700 | 2 | 62,480 | -2 |
