Consumer new car finance grew 10% year-on-year to reach £5.52bn in Q1, according to the Finance and Leasing Association’s (FLA) results.
New business in new car finance rose by 3% in volume in Q1 to 305,406 cars. In the twelve months to March, 86.5% of private new car sales were financed by FLA members through the point of sale (POS).
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In March, new car finance rose by 13% year-on-year to reach £3.62bn in value, and increased 5% by volume, to 194,348 cars financed.
The POS consumer used car finance market saw a 12% growth in new business to £3.87bn in value in Q1 2017, and an 11% year-on-year increase in volume to 348,059 cars over the same period.
In March, used car finance processed by FLA members increased by 17% year-on-year in Q1 to reach £1.41bn in value. In volume, 125,179 cars were sold in March 2017, an increase of 11% from last year’s figure.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The first quarter of 2017 saw consumer car finance new business volumes increase in line with the industry’s expectations of single-digit growth for the year overall.
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By GlobalData“The percentage of private new car sales financed by FLA members has remained steady at 86.5% since the beginning of 2017.”
