In the 12 months to October, showroom loans advanced by Finance & Leasing Association members to private new car buyers remained steady at 74.2%, said head of research and chief economist Geraldine Kilkelly.
The rate of growth in October was 4%, while volumes were up 15% to 230,872 in the three months to October (both compared with the same period last year).
Kilkelly said growth in retail new car finance was in line with the increase in vehicle sales in October. The FLA said loans to help retail purchases of new private cars were worth £942 million in October, 13% up year on year, with unit volumes 4% higher at 62,281. In the three months to October, advances were £3.515 billion (up 24%) on 230,872 cars (a gain of 15%). The 12-month figures were advances worth £11.722bn (30% ahead) on 784,359 cars (up 22%).
FLA data showed October’s 16% year-on-year growth in the number of consumer used cars bought using dealer finance contributed to a rise of 14% to 889,490 over the past 12 months.
“The used car finance market has reported strong growth since April,” said Kilkelly. “It’s on target to record its highest level of annual new business volumes in more than a decade.”
Dealers arranged loans worth £830m for retail buyers in October – 22% more than a year earlier – on 83,720 used cars (a 16% increase). The three-month figures were loans worth £2.370bn (23% up) on 244,110 units (19% ahead).
The total of 5,273 used cars bought on finance by businesses from dealers was 40% down year on year. That was worse than the three-month 28% dip (to 11,036) but the 12-month trend was better – 4% lower at 60,670 used cars.
Trends for new cars bought by businesses and financed through showrooms showed 0% year-on-year change at 37,114 for October. The three-month total of 96,963 was up 2% but the 12-month figure of 395,373 was 1% lower.
The FLA's full-year figures will be published next month.