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Consumer car finance volumes up 11% in first half of 2016

Point-of-sale new car finance grew by 10% by value and 5% by volume in June, according to the latest figures from the Finance & Leasing Association (FLA).

In the first half of 2016 overall, new business was up 16% by value and 11% by volume.

The percentage of private new car sales financed by FLA members through the POS reached 84.9% in the 12 months to June, up from 84.3% in the twelve months to May.

The POS consumer used car finance market also reported new business up 9% by value and 7% by volume in June. New business in the first half of 2016 grew 14% by value and 11% by volume.

Geraldine Kilkelly, FLA head of research and chief economist, said: “The POS consumer car finance market reported a strong performance in the first half of 2016, with double-digit growth in both the new and used car finance markets.

“Despite modest contractions in private new car registrations in recent months, FLA members have continued to report growth in new business volumes.”

Cars bought on finance by consumers through dealerships

New business Jun 2016 % change
on prev.
year
3 months
to Jun
2016
% change
on prev.
year
12 months
to Jun
2016
% change
on prev.
year
New cars            
Value of advances (£m) 1,533 +10 4,374 +13 17,518 +17
Number of cars 88,531 +5 253,643 +8 1,037,000 +11
Used cars            
Value of advances (£m) 1,139 +9 3,491 +13 12,965 +14
Number of cars 105,025 +7 324,877 +11 1,213,337 +11

Cars bought on finance by businesses

New business Jun 2016 % change
on prev.
year
3 months
to Jun
2016
% change
on prev.
year
12 months
to Jun
2016
% change
on prev.
year
New cars            
Number of cars 47,163 0 138,079 -5 508,205 -1
Used cars            
Number of cars 3,129 +10 12,028 +28 40,120 +1
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