Consumer car finance new business volumes fell by 7% in March 2024

The consumer new car finance market reported new business by value in March 2% higher than in the same month in 2023, while new business volumes fell by 5%. In Q1 2024, new business volumes in this market were 8% lower than in Q1 2023.

The consumer used car finance market reported a fall in the value of new business in March of 12% compared with the same month in 2023, while new business volumes decreased by 8%. In Q1 2024, new business volumes in this market were 2% lower than in Q1 2023.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The performance of the consumer new car finance market in the first quarter of 2024 was in line with trends in private new car registrations which fell by 9%. The percentage of these sales financed by FLA members has increased in recent months to 78.9% in the twelve months to March 2024.

“The rebound in the economy demonstrated by the latest official data was reflected in the FLA’s Q2 2024 Industry Outlook Survey which showed 80% of motor finance respondents expected some improvement in economic conditions over the next 12 months. Over the same period, more than three-quarters of respondents anticipated some increase in the value of new business.”

Cars bought on finance by consumers through the point of sale

 Cars bought on finance by businesses