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.
Go deeper with GlobalData
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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“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.”
Electric vehicles to surpass US$680 billion by 2027
