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Market Data Sponsored by Auto Finance Market Data Consumer car finance new business volumes fell by 3% in January 2023 Published: 9th March 2023 Share The Finance & Leasing Association (FLA) figures show that consumer car finance new business volumes fell in January 2023 by 3% compared with the same month in 2022. The corresponding value of new business fell by 5% over the same period. In the twelve months to January 2023, new business grew 5% by value and held steady by volume, compared with the same period in 2022. The consumer new car finance market reported a fall in new business of 6% by value and 10% by volume in January compared with the same month in 2022. In the twelve months to January 2023, new business volumes in this market also decreased by 10% compared with the same period in 2022. The consumer used car finance market reported new business volumes in January at a similar level to the same month in 2022, while the value of new business fell by 4% over the same period. In the twelve months to January 2023, new business volumes in this market grew by 4% compared with the same period in 2022. Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The consumer car finance market reported a modest fall in new business in January. In the first half of 2023, household expenditure is likely to remain relatively weak as pressures on household incomes from high inflation, and higher interest rates and taxes continue, but we should see a further easing of supply shortages in the new car market as the year progresses. “FLA’s latest research suggests that the value of consumer car finance new business is likely to contract by 6% in 2023 to £38 billion. The value of new business provided to consumers for new car purchases is expected to grow by 4% in 2023 to £18 billion, while consumer used car finance new business by value is forecast to fall by 12% in 2023 to £21 billion.” Cars bought on finance by consumers through the point of sale New business Jan 23 % change on prev yr 3 mths to Jan 23 % change on prev yr 12 mths to Jan 23 % change on prev yr New cars Value of advances (£m) 1,225 -6 3,712 -5 17,186 -4 Number of cars 48,414 -10 142,042 -11 678,561 -10 Used cars Value of advances (£m) 1,908 -4 4,929 -4 23,393 13 Number of cars 131,039 0 332,997 -1 1,530,405 4 Total cars Value of advances (£m) 3,133 -5 8,641 -5 40,579 5 Number of cars 179,453 -3 475,039 -5 2,208,966 0 Cars bought on finance by businesses New business Jan 23 % change on prev yr 3 mths to Jan 23 % change on prev yr 12 mths to Jan 23 % change on prev yr New cars Number of cars 24,827 22 82,734 23 286,226 -5 Used cars Number of cars 6,003 -27 14,193 -15 80,047 49 Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories Market DataConsumer car finance new business grew by 8% in April Market DataConsumer car finance new business volumes fell by 7% in March 2024 Market DataConsumer car finance new business volumes grew by 1% in February 2024 Auto Finance