Priya PatelTLDR:
New figures from the Finance & Leasing Association (FLA) reveal that consumer car finance new business volumes decreased by 7% in November 2023 compared to the same month in 2022. The value of new business was also 5% lower over the same period. In the first eleven months of 2023, new business volumes were 6% lower than the same period in 2022. The consumer new car finance market saw a 4% decrease in new business in November 2023 compared to November 2022, both by value and volume. The consumer used car finance market experienced a 6% decline in new business in November 2023 compared to the same month in 2022.
Key points:
- Consumer car finance new business volumes fell by 7% in November 2023 compared to November 2022.
- The corresponding value of new business was 5% lower over the same period.
- New business volumes in the first eleven months of 2023 were 6% lower than in the same period in 2022.
- The consumer new car finance market reported a decrease in new business in November 2023 of 4% by value and 9% by volume compared to November 2022.
- The consumer used car finance market reported a decrease in new business in November 2023 of 6% by value and volume compared to November 2022.
New figures from the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell by 7% in November 2023 compared to the same month in 2022. The corresponding value of new business was 5% lower over the same period. In the eleven months to November 2023, new business volumes were 6% lower than in the same period in 2022.
The consumer new car finance market reported a decrease in new business in November 2023 of 4% by value and 9% by volume compared with November 2022. Similarly, the consumer used car finance market saw a decrease in new business in November 2023 of 6% both by value and volume compared with the same month in 2022.
Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, commented on the figures, stating that while better news surrounding inflation and interest rates has brought more certainty for consumers, the impact of previous increases in these measures on household disposable incomes has led to subdued consumer spending in the near-term. The FLA’s Q4 2023 Industry Outlook Survey predicts that 70% of motor finance respondents, including fleet, anticipate an increase in new business over the next year, down from 73% in the Q3 2023 survey.
The total number of cars bought on finance by consumers through point of sale in November 2023 decreased by 7% compared to November 2022, while the total value of advances for new cars and used cars both dropped by 5-6% over the same period. In the business car finance market, the number of cars bought on finance for both new and used vehicles increased in November 2023 compared to the previous year.
