The number of new cars sold on finance fell 8% year-on-year to 45,728 in August, according to the Finance & Leasing Association (FLA).
Despite the drop in volume, the value increased slightly in the month – up 2% to £817m.
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The number of new cars sold in the month also fell, meaning the percentage of private new car sales financed by FLA members for the 12 months to August was 86.0% – the same figure it was for the 12 months to July.
Year-to-date, the number of new cars bought on finance was down 3%, while the value of the finance increased 4%.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The August figures reported by the POS consumer new car finance market are in line with wider trends in private new car sales. These trends are not unexpected given the strength of the market in recent years and subdued consumer confidence about the general economic outlook.”
The number of used cars bought on finance grew 2% in August to 113,221. The value of this finance was £1,284m – a year-on-year increase of 8%.
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By GlobalDataKilkelly added: “New business volumes in the POS consumer car finance market overall were stable in the first eight months of 2017 compared with the same period in 2016.”
