Car finance totals £21bn in 12 months
The UK’s new and used car market has been elevated by £21bn in car finance in the past year, according to new figures from the Finance and Leasing Association.
It has reported that its members lent £80.3bn to consumers and businesses in the first quarter of the year. This represents a four per cent rise on the first six months of 2024.
Of this, £20.2bn was provided to businesses for investment in machinery, equipment, and vehicles, while £21bn was provided to households for the purchase of new and used cars.
Stephen Haddrill, director general at the FLA, said: “During my time as director general of the FLA, our markets have faced many challenges; firstly, the Covid pandemic, then subsequent supply shortages, a cost-of-living crisis, tariff uncertainty, and indeed regulatory uncertainty.”
Resilient
He continued: “However, our members and their markets are resilient – annual new business levels increased from around £140bn a year in 2019 to almost £160bn in our latest statistics. This is heart-of-the-economy funding – whether it’s supporting small or micro business investment, high street purchases or helping to buy the family car. It matters because it makes a difference to people in their day-to-day lives.”
Haddrill added:
“Motor finance lenders are currently weathering a tough period, but they will prevail because they have good products and loyal customers.”
