Used car finance market to fall 5% to £21bn this year

By automotive-mag.com 4 Min Read

The Finance & Leasing Association is forecasting a 5% decline in used car finance to £21bn.

It said the market was stronger for the new car market which is forecast to rise 5% to £18bn.

The consumer new car finance market reported new business by value in February 4% higher than in the same month in 2023, while new business volumes fell by 5%.

In the first two months of 2024, new business volumes in this market were 12% lower than in the same period in 2023.

The consumer used car finance market reported a fall in the value of new business in February of 2% compared with the same month in 2023, while new business volumes increased by 2%.

In the first two months of 2024, new business volumes in this market were 2% higher than in the same period in 2023.

Geraldine Kilkelly, director of research and chief economist at the FLA, said: “February saw the consumer car finance market report its first growth in new business volumes overall since October 2022, supported by another positive month for the used car finance market.

 

The value of new business provided to consumers for new car purchases is forecast to grow by 5% in 2024 to £18 billion, while consumer used car finance new business by value is expected to fall by 5% in 2024 to £21 billion.

 

 

 

Table 1: Cars bought on finance by consumers through the point of sale
New business Feb 2024 %

change on prev. year

3
months to Feb 2024
% change on prev. year 12 months to Feb 2024 % change on prev. year
New cars            
Value of advances (£m) 817 4 3,012 -4 16,804 -2
Number of cars 29,986 -5 108,480 -10 633,113 -6
Used cars            
Value of advances (£m) 1,869 -2 5,235 0 22,078 -6
Number of cars 129,441 2 356,673 1 1,463,335 -6
Total cars            
Value of advances (£m) 2,686 0 8,246 -1 38,882 -5
Number of cars 159,427 1 465,153 -2 2,096,448 -6
             
             
Table 2: Cars bought on finance by businesses
New business Feb 2024 %

change on prev.

year

3

months to Feb

2024

% change on prev. year 12 months to Feb 2024 % change on prev. year
New cars            
Number of cars 25,730 23 87,026 14 384,839 36
Used cars            
Number of cars 4,264 5 13,664 -4 61,117 -23

 

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