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New car finance up 8% in May

New car finance volumes increased by 8% in May, according to the latest figures from the Finance & Leasing Association (FLA).

The more modest growth reported by FLA members in recent months mirrors the level of private new car sales.

The percentage of private new car sales financed by FLA members in the 12 months to May 2014 held steady at 75%.

Consumer used car finance volumes increased by 10% compared with May last year, and remained 18% higher in the first five months of 2014 than in the same period in 2013.

Geraldine Kilkelly, head of research and chief economist, said: “It’s been a quieter couple of months in the motor finance market, but FLA members remain optimistic, and expect new business growth of more than 10% in the new and used car finance markets over the next twelve months.”

In 2013 FLA members provided £27.5 billion to support the purchase of new and used cars, including almost three-quarters of private new car registrations.

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