Car finance heats up in summer

July was a positive month for both volumes and value of the consumer car finance market in the UK.

New figures released by the Finance and Leasing Association (FLA) show that point of sale (POS) consumer car finance new business volumes grew by five per cent in July, compared with the same month in 2018, while the value of new business increased by six per cent over the same period.

The POS consumer new car finance market reported new business in July up one per cent by volume and four per cent by value, compared with the same month in 2018. The percentage of private new car sales financed by FLA members through the POS was 91.2% in the 12 months to July.

The POS consumer used car finance market reported new business in July up seven per cent by volume and eight per cent by value, compared with the same month in 2018.

Commenting on the figures, Geraldine Kilkelly, head of research and chief economist at the FLA, said, ‘In July, the point of sale consumer car finance market reported growth for the first time since February 2019. New business volumes in the first seven months of 2019 held steady compared with the same period in 2018.

‘The consumer used car finance market was the main driver of headline growth in July as new business volumes increased at their strongest rate since October 2018.’