Finance value drops in July

Finance provided for new car purchases fell last month by 2% in value and 5% by volume compared with July 2004, according to figures from the Finance and Leasing Association.

Demand for business new car finance has waned in recent months whilst the consumer new car market remains weak. Used car finance was up 3% by value and 0% by volume in July compared with the same month a year ago.

£982m was provided by FLA members to finance the purchase of 87,183 new cars in July 2005; they also funded £583m to finance 64,757 used car purchases.

The figures relate only to motor finance provided at the point of sale, and exclude direct personal loans. The FLA says its members financed at least 50% of all new car registrations in the UK in 2004.