Monthly figures from the Finance & Leasing Association (FLA) show that new consumer car finance business volume fell 7% in November compared to 2022.
The corresponding value of new business was 5% lower over the same period. In the eleven months to November, new business volumes were 6% lower than in the same period in 2022.
The new car finance market reported a fall in new business in November of 4% by value and 9% by volume compared with the same month in 2022. In the eleven months to November, new business volumes in this market were 5% lower than in the same period in 2022.
The used car finance market reported a fall in new business in November of 6% both by value and volume compared with the same month in 2022. In the eleven months to November 2023, new business volumes in this market were 6% lower than in the same period in 2022.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The consumer car finance market is on track to report annual new business by value and volume of £39 billion and 2.1 million cars in 2023.
“Better news on inflation and interest rates has provided more certainty for consumers, but the adverse impact of previous rises in these measures on household disposable incomes means consumer spending is likely to remain subdued in the near-term. The FLA’s Q4 2023 Industry Outlook Survey suggests that 70% of motor finance respondents, including fleet, expect some increase in new business over the next year, down from 73% in the Q3 2023 survey. As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
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