FLA figures reveal flatlining consumer car finance market
New figures from the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell by two per cent in October compared to 2023.
The corresponding value of new business fell by one per cent over the same period.
In the 10 months to October 2024, new business was one per cent lower by volume compared with the same period in 2023.
Meanwhile, the consumer new car finance market reported new business by value in October two per cent lower than in the same month in 2023, while new business volumes fell by six per cent. In the 10 months to October 2024, new business volumes in this market were four per cent lower than in the same period in 2023.
The consumer used car finance market reported a fall in the value and volume of new business in October of one per cent compared with the same month in 2023. In the 10 months to October 2024, new business volumes in this market were one per cent lower than in the same period in 2023.
Consumer car finance expected to increase
However, the FLA’s latest Industry Outlook Survey suggested that 41% of motor finance providers expected some increase in new business over the next year, while a further 37% expected new business levels to remain stable.
Geraldine Kilkelly, director of research and chief economist at the FLA, said:
“Our latest market data shows modest falls in new business by value and volume reported by the consumer car finance market in October across both the new and used car finance markets. The average advance to consumers for new and used car purchases in October grew by five per cent and held steady respectively, compared with the same month in 2023.
“The outlook for consumer spending has weakened with the prospect of slower wage growth and higher taxes weighing on the recovery in real household disposable incomes.”
