FLA reports further growth for new car finance sector
The Finance and Leasing Association (FLA) has published its latest report which shows that point of sale (POS) consumer new car finance grew 13% by value and 7% in volume in November 2016, when compared to the same month in 2015.
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The latest figures show that FLA members provided 86.8% of new car finance in the 12 months to November, up from 86.4% in the 12 months to October. That means in the year to November, FLA members financed 1,051,012 cars in total.
All finance on the up
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The POS consumer car finance market reported overall new business volumes in the eleven months to November 2016 up by 9% compared with the same period in 2015, in line with expectations.”
“The popularity of POS finance products like personal contract purchase, hire purchase and leasing means that the majority of finance provided to consumers for cars is secured against the vehicle.”
“Record year” for BVRLA members
The FLA’s figures come at a time when the British Vehicle Rental and Leasing Association (BVRLA) is celebrating a record year for the leasing sector, with its membership passing the 900-mark.
Thanks to the ever-growing popularity of personal contract hire, the BVRLA remains positive for 2017, despite wider industry worries surrounding Brexit.
Commenting on the future, BVRLA chief executive Gerry Keaney said: “The vehicle and rental industry is resilient, innovative and totally client focused. Our members will continue to meet these and other challenges, turning many of them into opportunities to deliver yet more value to their customers.”