Consumer car finance new business volumes dropped by 3% year-on-year in May, new figures from the Finance & Leasing Association (FLA) have revealed.
The value of new business fell by 1% year-on-year over the same period, while the percentage of private new car sales financed by FLA members through the point of sale sat at 91% in the 12 months to May 2019.
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The value of POS consumer used car finance new business in May was a similar level to the same month in 2018.
“The POS consumer car finance market reported new business volumes of almost 1.1 million in the first five months of 2019, only 1% lower than in the same period in 2018,” said Geraldine Kilkelly, head of research and chief economist at the FLA.
“We continue to expect broadly stable new business volumes in 2019 as a whole. Consumer confidence about their own personal finances remains relatively strong, supported by a resilient labour market and low interest rate environment.”
Earlier this year, the FLA launched its Specialist Automotive Finance programme in partnership with the London Institute of Banking and Finance. The FLA said the overhaul will come with an improved range of training options for dealership staff that will further increase the professionalism, skills and knowledge in the sector. Those who successfully pass their yearly SAF online test, will accrue study credits towards the Level 3 SAF Advanced qualification which is accredited by the institute.
Adrian Dally, head of motor finance at the FLA, said: “Motor finance is the third largest market in the consumer credit sector, so the current level of scrutiny from regulators and the media should be considered the new normal.
“Staff training is therefore more important than ever, and the new suite of SAF courses provides a training option for everyone, regardless of their level of experience. Now is the time to make sure that all customer-facing staff have the skills they need to help your business thrive.”
