Consumer new car finance volumes grew 13% in 2014 year-on-year and by 10% in December to reach a record annual level of 897,593 units.
The percentage of private new cars sales financed through dealerships by Finance & Leasing Association members reached a new high of 76.1% in the twelve months to December 2014.
The consumer used car finance market also recorded double-digit growth in December as new business volumes increased by 11% compared with December 2013.
In 2014 as a whole, volumes were up by 14% to reach a new high of 1.05 million.
Geraldine Kilkelly, FLA’s head of research and chief economist, said: “There has been strong growth in consumer motor finance provided through dealerships by FLA members over the last couple of years. Our most recent industry confidence survey suggests that growth is likely to continue in 2015, but at a slower rate than in 2014.”
Retail store and online credit was up by 7% in December, and up 8% overall last year. Second mortgage new business was up 26% by value in December and 29% higher in 2014 overall, compared with 2013. The number of new second mortgages grew 1% in December and by 9% in 2014 as a whole.
“Responsibly-provided credit has played an important role in helping consumers make essential household purchases over the last year. Our research suggests that consumer credit will continue to grow in 2015, by between 3-4%. Together with a recovery in household disposable incomes, this will help support economic growth in 2015.”