The number of cars sold on point of sale finance fell 7% to 71,002 in October, according to the Finance & Leasing Association (FLA).
Despite the drop in volume, the value of the finance actually increased slightly, rising 2% to £1,373m.
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As a result of the drop, the percentage of private new car sales financed by FLA members through the POS was 86.1% in the twelve months to October, compared with 86% in the same period to September.
There was better news in the used car sector, where the 116,918 cars sold in finance represented a 9% increase compared to the amount financed in October 2016.
This value of the finance increased 15% over the same period, to £1,353m.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “Falls in new business volumes reported by the POS consumer new car finance market so far in 2017 have mirrored trends in private new car sales. FLA members’ penetration of this market has held steady at around 86%.
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By GlobalData“In 2017 as a whole, new business volumes in the POS consumer car finance market overall are expected to be around 2.3 million, a similar level to 2016.”
