Finance & Leasing Association9 May 2023
New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in March 2023 by 8% compared with the same month in 2022. The corresponding value of new business fell by 7% over the same period. In Q1 2023, new business fell 6% by value and 5% by volume, compared with Q1 2022.
The consumer new car finance market reported a fall in new business of 5% by value in March compared with the same month in 2022, while new business volumes decreased by 7%. In Q1 2023, new business volumes in this market were 7% lower than in Q1 2022.
The consumer used car finance market reported a fall in new business of 10% by value and 8% by volume in March compared with the same month in 2022. In Q1 2023, new business volumes in this market were 4% lower than in Q1 2022.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The consumer car finance market ended the first quarter of 2023 with new business volumes only 5% lower than in Q1 2022 despite the challenges faced by households from the squeeze on real incomes from high inflation, and higher interest rates and taxes.
Overall, FLA motor finance providers reported new business 2% up by value and 2% lower by volume in Q1 2023. The business new car finance market has seen a strong recovery in the first quarter of this year as supply shortages have eased.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
| Table 1: Cars bought on finance by consumers through the point of sale |
||||||
| New business |
Mar 2023 |
% change on prev. year |
3 |
% change on prev. year |
12 months to Mar 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
2,477 |
-5 |
4,491 |
-4 |
17,104 |
-4 |
| Number of cars |
95,943 |
-7 |
176,296 |
-7 |
671,647 |
-10 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
2,050 |
-10 |
5,824 |
-7 |
23,238 |
5 |
| Number of cars |
134,621 |
-8 |
391,487 |
-4 |
1,532,457 |
0 |
| Total cars |
|
|
|
|
|
|
| Value of advances (£m) |
4,528 |
-7 |
10,315 |
-6 |
40,342 |
1 |
| Number of cars |
230,564 |
-8 |
567,783 |
-5 |
2,204,104 |
-3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Mar 2023 |
% change on prev. year |
3 months to Mar 2023 |
% change on prev. year |
12 months to Mar 2023 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
40,004 |
40 |
86,363 |
33 |
303,028 |
2 |
| Used cars |
||||||
| Number of cars |
3,599 |
-17 |
13,253 |
-32 |
76,364 |
34 |
Note to editors:
- Consumer car finance reported in these figures refers to finance obtained through the point of sale.
- In 2022, FLA members provided £150 billion of new finance to UK businesses and households. £116 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2022. £51 billion of it supported the purchase of new and used cars, including almost 84% of private new car registrations.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
