New car finance volumes up 15%

New figures released today by the Finance & Leasing Association (FLA) show the number of new cars bought by consumers on finance provided through dealerships grew by 15% in June, compared with June 2014 – the strongest growth seen this year.

The percentage of private new car sales financed by FLA members through dealerships in the twelve months to June 2015 increased to a new high of 78.1%.

Point-of-sale consumer used car finance volumes also continued to grow, increasing by 7% in June compared with June 2014, and by 9% in the twelve months to June 2015.

Commenting on the figures, Geraldine Kilkelly, head of research and chief economist at the FLA said,

‘As we forecast at the beginning of the year, point-of-sale consumer car finance volumes have continued to grow in 2015, but at a slower rate than in 2014. The first half of 2015 saw growth of 8% in new business volumes compared with 17% growth in the first half of 2014.’

Table 1: Cars bought on finance by consumers through dealerships    
New business Jun 2015 % change on
prev. year
3 months to
Jun 2015
% change on
prev. year
12 months to
Jun 2015
% change on
prev. year
New cars            
Value of advances (£m) 1,400 +20 3,860 +16 14,984 +14
Number of cars 84,526 +15 234,114 +11 931,439 +9
Used cars            
Value of advances (£m) 1,040 +14 3,070 +13 11,324 +14
Number of cars 97,616 +7 291,553 +8 1,090,152 +9

 

Table 2: Cars bought on finance by businesses        
New business Jun 2015 % change on
prev. year
3 months to
Jun 2015
% change on
prev. year
12 months to
Jun 2015
% change on
prev. year
New cars            
Number of cars 47,187 +25 145,137 +23 514,647 +16
Used cars            
Number of cars 2,846 -23 9,408 -19 39,591 -17