New figures released today by the Finance & Leasing Association (FLA) show that new business volumes in the consumer car finance market fell by 4% in October 2019 compared with the same month in 2018, and held steady in the first ten months to October.
Within the overall figures, the new car finance market reported new business volumes 9% lower in October than in the same month in the previous year. Despite this fall, the percentage of private new car sales financed by FLA members reached a record 91.3% in the twelve months to October 2019.
The consumer used car finance market reported a fall in new business volumes of 2% in October compared with the same month in 2018.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “The consumer car finance market is on track to report new business volumes in 2019 as a whole of around 2.4 million cars, a similar level to 2018.
“Consumer confidence should improve as uncertainty about the economic outlook reduces, which will help support demand for car finance next year. New business volumes in the consumer car finance market are likely to remain stable in 2020 as a whole, with a modest fall in new business volumes in the new car finance market offset by single-digit growth in the used car finance market.”