Motor finance rises 11%

Figures released today by the Finance & Leasing Association (FLA) show that consumer new car finance volumes fell by three per cent in January 2015

This is compared with the same month in 2014, but remained 11% up in the twelve months to January.

The percentage of private new car sales financed through dealerships by FLA members reached a new high of 76.2% in the twelve months to January 2015.

Consumer used car finance volumes grew by three per cent in January and by 12% in the twelve months to January 2015.

Geraldine Kilkelly, head of research and chief economist at the FLA, said. ‘Consumer new car finance volumes over the last twelve months grew at a faster rate than private new car sales, and so we saw a new record high for the market share of dealer car finance.

‘Despite the quiet start to 2015, we expect the consumer car finance market to grow in 2015 as a whole.’