Market Data Sponsored by Market Data Consumer car finance new business drops 4% Published: 10th July 2024 Share 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 saleNew businessMay 2024% change on prev. year3months to May 2024% change on prev. year12 months to May 2024% change on prev. yearNew cars Value of advances (£m)1,45765,286517,0412Number of cars53,042-2191,623-2628,308-3Used cars Value of advances (£m)1,788-105,533-621,734-6Number of cars122,255-5377,517-11,458,537-4Total cars Value of advances (£m)3,245-410,819-138,775-2Number of cars175,297-4569,140-22,086,845-4Table 2: Cars bought on finance by businessesNew businessMay 2024% change on prev. year3 months to May 2024% change on prev. year12 months to May 2024% change on prev. yearNew cars Number of cars30,426098,5700385,06324Used cars Number of cars3,989-2512,995-561,082-17 Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories Corporate Member Market DataLate payments plague SMEs, reports latest research Market DataCorporate insolvencies fall in July 2024 Corporate Member Market DataRecent growth drives UK SMEs to target ambitious plans