Used automobile finance is predicted to fall by 5% this yr to £21 billion whereas new automobile purchases are forecast to develop by 5% to £18bn, in accordance with new figures from the Finance & Leasing Affiliation (FLA).
It added that shopper automobile finance new enterprise volumes grew in February by 1% in contrast with the identical month in 2023.
The corresponding worth of recent enterprise was at the same degree to February 2023. Within the first two months of 2024, new enterprise by worth and quantity every fell by 1% in contrast with the identical interval in 2023.
The patron new automobile finance market reported new enterprise by worth in February 4% increased than in the identical month in 2023, whereas new enterprise volumes fell by 5%. Within the first two months of 2024, new enterprise volumes on this market have been 12% decrease than in the identical interval in 2023.
The patron used automobile finance market reported a fall within the worth of recent enterprise in February of two% in contrast with the identical month in 2023, whereas new enterprise volumes elevated by 2%. Within the first two months of 2024, new enterprise volumes on this market have been 2% increased than in the identical interval in 2023.
Commenting on the figures, Geraldine Kilkelly, director of analysis and chief economist on the FLA, mentioned: “February noticed the buyer automobile finance market report its first development in new enterprise volumes total since October 2022, supported by one other constructive month for the used automobile finance market.
“FLA’s newest analysis means that the worth of shopper automobile finance new enterprise in 2024 will maintain regular at £39bn.”
In 2023, FLA members offered £151bn of recent finance to UK companies and households. £113bn of this was within the type of shopper credit score, nearly a 3rd of whole new shopper credit score written within the UK in 2023. £52bn of it supported the acquisition of recent and used vehicles, together with over 78% of personal new automobile registrations.
