Point of sale (POS) consumer new car finance business volumes fell by 8% year-on-year in June, according to the Finance & Leasing Association (FLA).
In June 2017, 81,403 new consumer cars were financed, with the value of advances remaining unchanged over the same period at £1.53bn. In the three months to June 2017, the value of advances fell by 7% to £4.073bn, and the number of new cars financed fell by 16% year-on-year to 212,236 units.
The used market fared better, with the number of finance advances increasing by 12% year-on-year in June 2017 to £1.28bn. In the same period, the number of used cars financed through FLA members increased by 7% to 112,034 units.
In the three months to June 2017, the value of advances for used car finance increased by 9% year-on-year, and the number of cars financed increased by 4% over the same period.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The recent trends in the consumer new car finance market very much reflect those in private new car sales.
“In the first half of 2017, the POS consumer car finance market reported a fall in new business volumes of only 1%, which remains in line with industry expectations of a broadly stable picture for the year as a whole.”