Figures released by the Finance & Leasing Association (FLA) have shown that new business in the point of sale (POS) consumer car finance market increased 1% by volume and 6% by value in January, compared with the same month in 2018.
The POS consumer new car finance market reported new business volumes up by 4% year-on-year in January, while the value of new business increased by 8% over the same period.
The percentage of private new car sales financed by FLA members through the POS was 91.2% in the twelve months to January 2019, unchanged on the same period to December 2018.
The POS consumer used car finance market reported new business volumes in January at a similar level to the same month in 2018, while the value of new business increased by 5% over the same period.
There were 26,752 new cars bought by businesses in the month, a 3% year-on-year increase. There were also 6,872 used cars bought, a 36% increase from January 2018.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The POS consumer car finance market reported modest growth in new business volumes in January, with consumer confidence hit by continued Brexit-related uncertainty.
“The market is likely to report new business volumes stable in 2019 as a whole if we see a pick-up in the economic outlook.”
The POS consumer car finance market fell by 1% last November, compared with the same month in 2017. The percentage of private new car sales financed by FLA members through the POS was 91.2% in the twelve months to November.
In 2018, FLA members provided £137bn of new finance to UK businesses and households. Of this £104bn of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2018. Around £46bn of it supported the purchase of new and used cars, including over 91% of private new car registrations.