Motor Finance highlights some of the key figures from the FLA and SMMT.
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Analysis
Figures released by the FLA show that new business in the point of sale (POS) consumer new car finance market grew 15% by value and 10% by volume in May, compared with the same month in 2017.
The percentage of private new car sales financed by FLA members through the POS was 89.3% in the twelve months to May 2018, unchanged compared with the same period to April 2018.
FLA head of research and chief Economist Geraldine Kilkelly said: “Monthly falls in new business volumes reported by the consumer new car finance market in the first three months of 2018 have been followed by a recovery in April and May, in line with demand for new car purchases.”
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By GlobalData
Analysis
The UK new car market declined moderately in June, with year-on-year demand falling by -3.5%, according to the latest figures released today by the (SMMT). 234,945 new cars joined British roads in the month as the market continues to stabilise following turbulence over the past year or so. Demand from larger fleets fell -6.4%, but business buyers with fewer than 25 vehicles on their books returned to showrooms, registering an 11.3% uplift in demand after an 11-month long hiatus. Private demand was largely flat, at -0.6%.
There was good news for the alternatively fuelled vehicle sector, with a 45.0% increase in plug-in and hybrid registrations as consumers responded to a growing range of models. Petrol cars also attracted more buyers, with demand up 12.3%. However, this growth was not enough to offset continuing decline in diesel registrations, with a -28.2% fall a result of continuing consumer uncertainty over future policy towards this technology.
