Figures released by the Financial Leasing Association show new business volumes in the consumer car finance market fell by 4% in October 2019 compared with the same month last year.
The new car finance market showed new business volumes were 9% lower in October than in the same month last year.
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However, the percentage of private new car sales financed by FLA members reached a record 91.3% in the twelve months to October 2019.
The consumer used car finance market showed a fall in new business volumes of 2% in October compared to the same month in 2018.
Geraldine Kilkelly, head of research and Chief Economist at the FLA, said: “The consumer car finance market is on track to report new business volumes in 2019 as a whole of around 2.4 million cars, a similar level to 2018.”
“Consumer confidence should improve as uncertainty about the economic outlook reduces, which will help support demand for car finance next year. New business volumes in the consumer car finance market are likely to remain stable in 2020 as a whole, with a modest fall in new business volumes in the new car finance market offset by single-digit growth in the used car finance market,” she added.
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By GlobalDataIn November the FLA revealed the UK consumer car finance market saw new business grow 4% at the point of sale (PoS) in September.
In Q3 as a whole, new business volumes grew 3% year-on-year. Value-wise, September saw a 7% increase in value year-on-year, while Q3 figures were up 5% on 2018.
The percentage of private new car sales financed by FLA members through the POS was 91.1% in the 12 months to September 2019.
In the new car finance market, value grew 5% in September despite business volumes falling 1% year-on-year. In the used market, new business jumped 12% by value and 9% by volume when compared with the same month in 2018.
