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Car finance market grew 3% by value in 2019, FLA reports

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The Finance and Leasing Association (FLA) has reported a 3% increase in the value of new business in the car finance during 2019.

Data published by the FLA today (February 13) revealed that new business volumes in the consumer car finance market grew in December 2019 by 6% compared with the same month in 2018, to remain flat across the year as a whole at 2.4 million vehicle sales.

At the same time the value of finance business completed in 2019 rose by 3% to £38 billion.

The consumer new car finance market reported growth in new business volumes of 4% in December 2019 compared with the same month in 2018. 

In 2019 as a whole, new business volumes in this market fell by 3%. 

The percentage of private new car sales financed by FLA members was 91.7% in the twelve months to December 2019.

The consumer used car finance market reported new business volumes up in December 2019 by 7% compared with the same month in 2018. In 2019 as a whole, new business volumes in this market grew by 2%.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The performance of the consumer car finance market in 2019 was in line with expectations.

“A similar performance of broadly stable new business volumes overall in 2020 is likely if we see a pick-up in consumer confidence.

“FLA members continued to set new records in 2019, with the penetration rate of consumer new car finance reaching 91.7%, and a record level of new business volumes of almost 1.5 million cars reported by the consumer used car finance market.”

AM reported today that a total of 1.15 million county court judgements (CCJs) were pursued during 2019, making it a record year of action against consumers in debt, according to data published by the Registry Trust.

Registry Trust chairman Mick McAteer said that a growing number of vulnerable households are “facing severe financial strain” after it emerged that the total value of consumer debt being chased via CCJs amounted to over £1.7bn last year.

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