Consumer car finance new business volumes fell in April 2023 by 15% compared with the same month in 2022, according to new figures released by the Finance & Leasing Association (FLA).
The corresponding value of new business fell by 16% over the same period. In the first four months of 2023, new business fell 8% by both value and volume compared with the same period in 2022, the FLA said.
The consumer new car finance market reported a fall in new business of 15% by value in April compared with the same month in 2022, while new business volumes fell by 18%. In the first four months of 2023, new business volumes in this market were 9% lower than in the same period in 2022.
The consumer used car finance market reported a fall in new business of 17% by value and 14% by volume in April compared with the same month in 2022. In the first four months of 2023, new business volumes in this market were 7% lower than in the same period in 2022.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The performance of the consumer car finance market in April reflected the ongoing uncertainty about the economic outlook as core inflation continued to rise and consumers face the prospect of further increases in Bank Rate over the summer.
“Recent trends in the business and consumer new car finance markets also reflect the wider trends in new car registrations which have shown a strong recovery in fleet registrations but a more subdued private market as supply shortages have eased.
“FLA’s latest research suggests that the value of consumer car finance new business is likely to contract by 3% in 2023 to £39.8 billion. The value of new business provided to consumers for new car purchases is expected to grow by 3.5% in 2023 to £17.9 billion, while consumer used car finance new business by value is forecast to fall by 7.7% in 2023 to £21.9 billion.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”