Fall in consumer car finance new business in October

The value of this business, meanwhile, was two percent lower over the same period. Additionally, in the ten months to October, new business volumes remained six percent lower than during same period in 2022.  

Broken down by new and used cars, in the new car finance market new business was up one percent by value year-on-year but two percent lower by volume. Meanwhile, the used car finance market reported a fall in new business in October of five percent by value and four percent by volume when compared to the same month in 2022.  

The FLA’s director of research and chief economist Geraldine Kikelly said: “The consumer car finance market remains remarkably resilient despite the subdued economic outlook, with the value of new business expected to be only four percent lower in 2023 than in 2022.

“FLA’s latest research also suggests that the value of consumer car finance new business in 2024 is expected to grow by two percent to £40.1bn. The value of new business provided to consumers for new car purchases is forecast to grow by nine percent in 2024 to £18.9bn, while consumer used car finance new business by value is expected to fall by four percent in 2024 to £21.2bn.