Figures released by the Finance & Leasing Association (FLA) showed that the point of sale (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.
The POS consumer used car finance market reported new business in November up 5% by value, while volumes remained at a similar level to the same month in 2017.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The POS consumer car finance market is on course for single-digit new business volumes growth in 2018 as a whole, despite the quieter performance of the market in November.”
In 2017, FLA members provided £128bn of new finance to UK businesses and households. Around £96bn of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2017. Of this £44bn of it supported the purchase of new and used cars, including over 88% of private new car registrations.
In the November FLA results, the value of advances for cars bought on finance by consumers through dealerships was £1.4bn, showing no change on the previous year. The number of new cars bought was 67,936, a 2% decline.
The total number of cars bought through consumer finance was 175, 948, down 1% year-on-year. The value of advances was £2.76bn, a 2% rise.
There were 28,820 new cars bought on finance by businesses, a 13% drop from the previous year. For used cars there were 5,226 vehicles bought, a 20% year-on-year rise.
FLA results showed that new business volumes in the point of sale (POS) consumer new car finance market remained stable in October, compared with the same month in 2017, while the value of new business grew by 5% over the same period to £1.5bn. The percentage of private new car sales financed by FLA members through the POS was 91.0% in the twelve months to October.