Consumer car finance new business volumes fell by 11% in June 2024
New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in June 2024 by 11% compared with the same month in 2023. The corresponding value of new business decreased by 10% over the same period. In the first half of 2024, new business was 3% lower by both value and volume compared with the same period in 2023.
The consumer new car finance market reported new business by value in June 6% lower than in the same month in 2023, while new business volumes fell by 12%. In the first half of 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 June of 13% compared with the same month in 2023, while new business volumes fell by 10%. In the first half of 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: “In the first half of 2024, the consumer car finance market reported a modest fall in new business despite challenging economic conditions. The fall in the consumer new car finance market reflects trends in private new car sales and the shift by consumers to using salary sacrifice schemes to finance new battery electric vehicle purchases.
“Our latest research suggests that the value of new business in the consumer car finance market will fall by 1% in 2024 to £38.5bn, reflecting growth of 1% in the consumer new car finance market to £17.1bn and a 3% fall in the consumer used car finance market to £21.4bn.
“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 | Jun 2024 | % change on prev. year | 3 months to Jun 2024 | % change on prev. year | 12 months to Jun 2024 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 1,545 | -6 | 4,250 | 1 | 16,879 | 0 |
| Number of cars | 55,097 | -12 | 153,273 | -7 | 617,574 | -6 |
| Used cars | ||||||
| Value of advances (£m) | 1,670 | -13 | 5,385 | -5 | 21,528 | -6 |
| Number of cars | 112,144 | -10 | 364,679 | -1 | 1,448,074 | -4 |
| Total cars | ||||||
| Value of advances (£m) | 3,215 | -10 | 9,636 | -3 | 38,407 | -3 |
| Number of cars | 167,241 | -11 | 517,952 | -3 | 2,065,648 | -5 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Jun 2024 | % change on prev. year | 3 months to Jun 2024 | % change on prev. year | 12 months to Jun 2024 | % change on prev. year |
| New cars | ||||||
| Number of cars | 27,999 | -23 | 93,066 | -3 | 376,572 | 16 |
| Used cars | ||||||
| Number of cars | 5,440 | -7 | 14,396 | -4 | 60,951 | -8 |
