The consumer new car finance market suffered an 8% year-on-year decline in new business volumes in November, according to the Finance & Leasing Association (FLA).
The value of advances in the new car market however, dropped just 1% to £1.4m, while the percentage of private new car sales financed by FLA members was 91.2% in the 12 months to November 2019.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
New business volumes in the overall consumer car finance market fell in November 2019 by 1% year-on-year, with the used car market reporting an increase of 3% when compared with the same month in 2018.
The number of cars bought on finance by businesses saw significant declines in both the new and used markets, falling 18% and 17% respectively.
Commenting on the figures, Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The consumer used car finance market is poised for a record level of new business volumes in 2019 of almost 1.5m cars, 2% higher than in 2018.
“Further single-digit growth in this market is likely in 2020 with recent survey data suggesting pick-up in consumer confidence about the economic outlook, personal finances and committing to big-ticket purchases.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn December, the FLA called on the new government to transform customer protection in the consumer credit market, stating that the 45-year-old Consumer Credit Act (CCA) is “preventing lenders from providing the help that their customers deserve”.
According to the FLA the act makes it unnecessarily complex to finance a vehicle and it’s charging point in the same transaction. Finding the right finance at the right time is vital for small businesses to grow and thrive, said the FLA, but the reality for owners is the search for finance often starts at the end of the working day.
Stephen Haddrill, director general of the FLA said: “The government should reform the CCA urgently, rather than continuing to turn a tin ear to those in financial difficulty, or those trying to help them. Consumers need to be given a credible, firm promise of legislation early in the new Parliament; legislation that will deliver protections appropriate for the 21st century.”
