New figures released today show that consumer car finance new business fell in August 2024 compared with the same month the year before.
The data from the Finance & Leasing Association revealed it was down 2% while the value of new business fell 1%.
However, consumer new car business value was up 13% year-on-year and volumes also grew by 7%.
This shows a contrast from the previous eight months when volumes were 6% lower than the same period in 2023.
In the used car finance sector, the value of new business fell by 7% year-on-year and volumes fell by 4%.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: ‘August saw the consumer new car finance market report only its second month of growth in new business volumes since the beginning of this year.
‘Overall, the point-of-sale consumer car finance market has seen a modest contraction in new business by both value and volume so far in 2024.
‘The FLA’s Q3 2024 Industry Outlook Survey suggested that motor finance providers are cautiously optimistic of an improvement in economic conditions, with three-quarters expecting some increase in new business over the next twelve months.
‘As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.’