The Finance and Leasing Association has claimed that the point of sale new car finance market remains “on track”, despite an 8% decline in volumes during November.
As new car registrations fell by 11.2% during 2017’s penultimate month, the finance market also suffered a decline but managed to increase by 2% over the same period.
A total of 69,287 new cars were financed by FLA members during the month, to the value of £1.39 billion.
Used cars generated 104,683 POS finance agreements during the month – up 10% – amounting to a value of £1.24 billion, again demonstrating the potential of the used market to the finance sector.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The POS consumer car finance market remains on target to report new business volumes of 2.3 million in 2017 as a whole, a similar level to 2016.
“The performance of the POS consumer new car finance market in November continued to reflect trends in private new car sales. FLA members’ penetration of this market has held steady over the past year at around 86%.”
The FLA reported that the percentage of private new car sales financed by FLA members through the POS was 85.9% in the twelve months to November, compared with 86.1% in the same period to October.