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New car finance volumes up 15% in first six months of 2014

Consumer new car finance volumes grew by 9% in June, and by 15% in the first six months of 2014, according to figures released by the Finance & Leasing Association (FLA).

The percentage of private new car sales financed by FLA members in the twelve months to June 2014 was 75.2%, up from 75.0% in May.

In June, the consumer used car finance sector reported its best performance of the second quarter with new volumes up by 22% compared with the same month last year. Volumes in the first half of 2014 grew by 18%.

Geraldine Kilkelly, head of statistics and chief economist at the FLA, said: "The first half of 2014 has seen strong performances in both the consumer new and used car finance sectors. 

"The last six months have also seen the FLA's penetration rate maintained at around three quarters of all private new car sales in the UK which shows how popular point-of-sale credit is with new car buyers."

In 2013 FLA members provided £89.0 billion of new finance to UK businesses and households. £66.6 billion of this was in the form of consumer credit, almost a third of all unsecured lending in the UK.

And £27.6 billion of it supported the purchase of new and used cars, including almost three-quarters of private new car registrations.

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