Consumer car finance new business down 11%

Consumer car finance new business volumes fell in June 2024 by 11% compared with the same month in 2023, according to the latest data from the Finance & Leasing Association (FLA).

The corresponding value of new business decreased by 10% over the same period. In the first half of 2024, new business was 3% lower by both value and volume compared with the same period in 2023.

The consumer new car finance market reported new business by value in June 6% lower than in the same month in 2023, while new business volumes fell by 12%. In the first half of 2024, new business volumes in this market were 7% lower than in the same period in 2023.

The consumer used car finance market reported a fall in the value of new business in June of 13% compared with the same month in 2023, while new business volumes fell by 10%. In the first half of 2024, new business volumes in this market were 1% lower than in the same period in 2023.

“In the first half of 2024, the consumer car finance market reported a modest fall in new business despite challenging economic conditions. The fall in the consumer new car finance market reflects trends in private new car sales and the shift by consumers to using salary sacrifice schemes to finance new battery electric vehicle purchases.

“Our latest research suggests that the value of new business in the consumer car finance market will fall by 1% in 2024 to £38.5 billion, reflecting growth of 1% in the consumer new car finance market to £17.1 billion and a 3% fall in the consumer used car finance market to £21.4 billion.”

Table 1: Cars bought on finance by consumers through the point of sale
New business	Jun 2024	%  change on prev. year	3 months to Jun 2024	% change on prev. year	12 months to Jun 2024	% change on prev. year
New cars
Value of advances (£m)	1,545	-6	4,250	1	16,879	0
Number of cars	55,097	-12	153,273	-7	617,574	-6
Used cars
Value of advances (£m)	1,670	-13	5,385	-5	21,528	-6
Number of cars	112,144	-10	364,679	-1	1,448,074	-4
Total cars
Value of advances (£m)	3,215	-10	9,636	-3	38,407	-3
Number of cars	167,241	-11	517,952	-3	2,065,648	-5
Table 2: Cars bought on finance by businesses
New business	Jun 2024	%  change on prev. year	3 months to Jun 2024	% change on prev. year	12 months to Jun 2024	% change on prev. year
New cars
Number of cars	27,999	-23	93,066	-3	376,572	16
Used cars
Number of cars	5,440	-7	14,396	-4	60,951	-8