May 2013

Strong car finance growth in Q1 2013

Figures published today by the Finance & Leasing Association (FLA) show another double digit increase in the number of new cars bought on finance by consumers through dealerships.

In the twelve months to March 2013, the number of cars financed this way increased by 27%, and by 22% in the first quarter of this year.

FLA members’ penetration of the private new car registrations market was 72.9%, up from 71.9% in February 2013.

Commenting on the figures, Paul Harrison, Head of Motor Finance at the FLA, said:

“Used car finance volumes in March were relatively static with the new number plate helping to drive strong growth in private new car finance sales. Our figures again highlight how affordable finance deals are helping to bring people into car showrooms.

“Secured lending – such as hire purchase and personal contract purchase agreements – can often be provided on more attractive terms, as the risk is reduced for the lender and this is reflected in the competitive deals available to customers.”

Table 1: Cars bought on finance by consumers through dealerships

Mar-13

% change on prev. year

3 months to Mar 2013

% change on prev. year

12 months to Mar 2013

% change on prev. year

New cars
Value of advances (£m)

1,898

+25

2,989

+29

10,073

+34

Number of cars

127,084

+18

204,254

+22

699,052

+27

Used cars
Value of advances (£m)

689

+2

2,013

+8

7,413

+8

Number of cars

73,509

-1

215,958

+4

796,164

+7

 

Table 2: Cars bought on finance by businesses

Mar-13

% change on prev. year

3 months to Mar 2013

% change on prev. year

12 months to Mar 2013

% change on prev. year

New cars
Number of cars

37,194

-11

91,062

-2

394,615

+3

Used cars
Number of cars

4,260

+5

21,271

+71

71,374

+51