The UK consumer car finance market saw new business grow 4% at the point of sale (PoS) in September, the latest figures from the Finance & Leasing Association (FLA) have revealed.
In Q3 as a whole, new business volumes grew 3% year-on-year. Value-wise, September saw a 7% increase in value year-on-year, while Q3 figures were up 5% on 2018.
The percentage of private new car sales financed by FLA members through the POS was 91.1% in the 12 months to September 2019.
In the new car finance market, value grew 5% in September despite business volumes falling 1% year-on-year. In the used market, new business jumped 12% by value and 9% by volume when compared with the same month in 2018.
Some businesses appear to be making a switch to the used car market, with the number of new vehicles bought by businesses in September dropping 14% year-on-year to 26,658. Meanwhile, the number of used cars bought on finance by businesses jumped 18% to 4,231.
In Q3 2019, the number of used cars bought on finance by businesses has increased 19%, while new car purchases have dropped 3% year-on-year.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “In September, the PoS consumer used car finance market reported its strongest growth since August 2018, which contributed to an increase in new business volumes of 5% in Q3 2019 as a whole.
“The PoS consumer car finance market overall reported stable new business volumes in the first nine months of 2019, in line with expectations.”