Car finance market enjoys healthy growth

Consumer car finance new business grew by five per cent in August, according to new figures released by the Finance & Leasing Association (FLA).

Meanwhile, the value of new business grew by 13% during the same period.

In terms of finance for new cars, the FLA reported that the consumer market grew by two per cent in value but dropped by six per cent volume. For used cars, the value of car finance rose by 19% and volume increased by eight per cent.

Geraldine Kilkelly, director of research and chief economist at the FLA, said: “In August, the consumer car finance market reported growth in both the value and volume of new business for the first time since March this year, buoyed by another strong performance by the consumer used car finance market. Growth in average advances provided for consumer new and used car purchases remained robust despite some softening in the growth of new and used car prices.

“During the coming months when many consumers may be facing increased pressures on their household incomes, the motor finance industry remains committed to meeting demand for the financing of car purchases and providing targeted support to customers who may need it.

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”