Consumer car finance new business drops 4%

Consumer car finance new business fell, both by value and volume, in May 2024 by 4% compared with the same month in 2023, according to the latest data from the Finance & Leasing Association (FLA).

In the five months to May 2024, new business was 1% lower by value and 2% lower by volume compared with the same period in 2023.  

The consumer new car finance market reported new business by value in May 6% higher than in the same month in 2023, while new business volumes fell by 2%.  In the five months to May 2024, new business volumes in this market were 5% lower than in the same period in 2023. 

The consumer used car finance market reported a fall in the value of new business in May of 10% compared with the same month in 2023, while new business volumes decreased by 5%. In the five months to May 2024, new business volumes in this market held steady compared with the same period in 2023. 

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The point-of-sale (POS) consumer car finance market has seen only a slight fall in new business volumes in 2024 so far.  The finance penetration of the private new BEVs market has continued to improve although the most popular way of obtaining a new BEV continues to be via a salary sacrifice scheme.  

“Our latest research suggested that the POS consumer car finance market would see new business by value hold steady in 2024 at around £39 billion, supported by improved consumer confidence as real earnings continue to grow and with the prospect of lower interest rates.”

Table 1: Cars bought on finance by consumers through the point of sale
New business	May 2024	%  change on prev. year	3 months to May 2024	% change on prev. year	12 months to May 2024	% change on prev. year
New cars
Value of advances (£m)	1,457	6	5,286	5	17,041	2
Number of cars	53,042	-2	191,623	-2	628,308	-3
Used cars
Value of advances (£m)	1,788	-10	5,533	-6	21,734	-6
Number of cars	122,255	-5	377,517	-1	1,458,537	-4
Total cars
Value of advances (£m)	3,245	-4	10,819	-1	38,775	-2
Number of cars	175,297	-4	569,140	-2	2,086,845	-4
Table 2: Cars bought on finance by businesses
New business	May 2024	%  change on prev. year	3 months to May 2024	% change on prev. year	12 months to May 2024	% change on prev. year
New cars
Number of cars	30,426	0	98,570	0	385,063	24
Used cars
Number of cars	3,989	-25	12,995	-5	61,082	-17