Consumer car finance new business volumes fell by 3% in October 2023

New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell by 3% in October 2023 compared with the same month in 2022. The corresponding value of new business was 2% lower over the same period.

In the ten months to October 2023, new business volumes remained 6% lower than in the same period in 2022.

The consumer new car finance market reported new business up 1% by value but 2% lower by volume in October compared with the same month in 2022. In the ten months to October 2023, new business volumes in this market remained 5% lower than in the same period in 2022.

The consumer used car finance market reported a fall in new business in October of 5% by value and 4% by volume compared with the same month in 2022. In the ten months to October 2023, new business volumes in this market were 6% lower than in 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 remains remarkably resilient despite the subdued economic outlook, with the value of new business expected to be only 4% lower in 2023 than in 2022.

“FLA’s latest research also suggests that the value of consumer car finance new business in 2024 is expected to grow by 2% to £40.1 billion. The value of new business provided to consumers for new car purchases is forecast to grow by 9% in 2024 to £18.9 billion, while consumer used car finance new business by value is expected to fall by 4% in 2024 to £21.2 billion.”

Cars bought on finance by consumers through the point of sale

New business	Oct 2023	% change on prev. year	3 months to Oct 2023	% change on prev. year	12 months to Oct 2023	% change on prev. year
New cars
Value of advances (£m)	1,387	1	4,504	3	17,000	-2
Number of cars	51,953	-2	169,705	-2	651,933	-6
Used cars
Value of advances (£m)	1,831	-5	5,571	-8	22,222	-7
Number of cars	123,390	-4	369,296	-7	469,574	-5
Total cars
Value of advances (£m)	3,218	-2	10,074	-3	39,223	-5
Number of cars	175,343	-3	539,001	-5	2,121,507	-6