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New car finance sales fell by 8% in June – leading to a drop of 7% overall for the second quarter of 2017.

However, falling demand for new cars was offset by growth in the used car finance market – up 12% in June and 9% for quarter two.

The figures from the Finance & Leasing Association (FLA) show that point of sale (POS) consumer new car finance business value was flat over the same period. The percentage of private new car sales financed by FLA members through the POS was 86.3% in the 12 months to June, unchanged compared with the same period to May.

The POS consumer used car finance market reported new business in June up 12% by value, compared with the same month in 2016. In the second quarter of 2017, this market reported new business up 4% by volume.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The recent trends in the consumer new car finance market very much reflect those in private new car sales. In the first half of 2017, the POS consumer car finance market reported a fall in new business volumes of only 1%, which remains in line with industry expectations of a broadly stable picture for the year as a whole.”

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