Consumer car finance new business volumes fell in January 2024 by 3% compared with the same month in 2023, according to new figures released by the Finance & Leasing Association (FLA).

The corresponding value of new business also fell by 3% over the same period.  In the 12 months to January 2024, new business by value and volume decreased by 5% and 6% respectively, compared with the same period in 2023

The consumer new car finance market reported a fall in new business in January of 9% by value and 16% by volume compared with the same month in 2023.  In the twelve months to January 2024, new business volumes in this market were 6% lower than in the same period in 2023.

The consumer used car finance market reported growth in new business in January of 1% both by value and volume compared with the same month in 2023.  In the twelve months to January 2024, new business volumes in this market were 6% lower than in the same period in 2023.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “January saw the consumer used car finance market report its first growth in new business volumes in a year, and a second consecutive month of growth in the value of new business.  By contrast, the weakness in the consumer new car finance market reflects the shift from retail to fleet new car sales as consumers opt for obtaining electric vehicles through salary sacrifice schemes. 

“In the near term, consumer spending growth is likely to remain subdued despite an improved outlook for real household disposable incomes. The consumer car finance market is expected to grow by 2% in 2024 to reach just over £40 billion.

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”