Consumer car finance goes from strength to strength

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Author: | Updated: 10 Oct 2016 02:24

Four out of five private new cars are purchased using some form of point-of-sale finance, according to the the latest stats from the Finance and Leasing Association (FLA).

People are using finance methods such as leasing to get behind the wheel of new cars.

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New figures show that consumer new car finance grew by 9% in value in August, while overall volume was 5% greater than the same month last year.

This means that of all the new cars registered in the twelve months to August, 85.5% were obtained via car finance – a 0.2% increase compared with the twelve months to July.

Cars obtained through finance

New business

Aug 2016

% change
on prev.
year

3 months
to Aug
2016

% change
on prev.
year

12 months
to Aug
2016

% change
on prev.
year

New cars

      

Value of advances (£m)

805

+9

3,509

+6

17,596

+16

Number of cars

49,740

+5

209,761

+4

1,040,519

+10

Used cars

      

Value of advances (£m)

1,116

+23

3,435

+11

13,209

+14

Number of cars

110,572

+21

319,151

+9

1,232,904

+11

Cars bought on finance by businesses

New business

Aug 2016

% change
on prev.
year

3 months
to Aug
2016

% change
on prev.
year

12 months
to Aug
2016

% change
on prev.
year

New cars

      

Number of cars

29,374

+0

125,348

+2

510,671

+1

Used cars

      

Number of cars

3,303

+69

10,566

+36

42,635

+12

The news comes a week after the SMMT announced that September 2016 was the highest on record for new car registrations, as the market showed resilience to challenging conditions following the vote to leave the EU thanks to attractive finance packages and the the new 66 plate.

66-plate Volkswagen Tiguan

Commenting on the figures, Geraldine Kilkelly, chief economist at the FLA, said: “The growth reported by the POS consumer car finance market in August marked more than five years of consecutive monthly new business growth.

“The performance of this market is in line with our expectations of strong single-digit new business growth in 2016 as a whole.”

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