Consumer car finance new business volumes fell by 3% in January 2024

The consumer new car finance market reported a fall in new business in January of 9% by value and 16% by volume compared with the same month in 2023. In the twelve months to January 2024, new business volumes in this market were 6% lower than in the same period in 2023.

The consumer used car finance market reported growth in new business in January of 1% both by value and volume compared with the same month in 2023. In the twelve months to January 2024, new business volumes in this market were 6% lower than in the same period in 2023.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “January saw the consumer used car finance market report its first growth in new business volumes in a year, and a second consecutive month of growth in the value of new business. By contrast, the weakness in the consumer new car finance market reflects the shift from retail to fleet new car sales as consumers opt for obtaining electric vehicles through salary sacrifice schemes.

“In the near term, consumer spending growth is likely to remain subdued despite an improved outlook for real household disposable incomes. The consumer car finance market is expected to grow by 2% in 2024 to reach just over £40 billion.”

Cars bought on finance by consumers through the point of sale

Cars bought on finance by businesses