The Finance & Leasing Association (FLA) has confirmed that point of sale (POS) consumer new car finance market fell by 8% in August, compared with the same month in 2016. The value of new business was up by 2% over the same period.
The FLA, whose members finance 86.0% of private new car sales attribute the decline in volume of new business down to faltering consumer confidence. Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, commented, “The August figures reported by the POS consumer new car finance market are in line with wider trends in private new car sales. These trends are not unexpected given the strength of the market in recent years and subdued consumer confidence about the general economic outlook.
“New business volumes in the POS consumer car finance market overall were stable in the first eight months of 2017 compared with the same period in 2016.”
In 2016, FLA members provided £41 billion of finance to support the purchase of new and used cars, including over 86% of private new car registrations.
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