Consumer Car Finance Market Sees 4% Drop in Value and Volume for May 2024: FLA
Are you in the market for a new car? If so, you may be interested to know that consumer car finance new business saw a slight decline in May 2024 compared to the same month in 2023. According to the Finance & Leasing Association (FLA), both the value and volume of new business fell by 4% in May 2024.
In the five months leading up to May 2024, new business was 1% lower by value and 2% lower by volume compared to the same period in 2023. The consumer new car finance market, however, reported a 6% increase in new business value in May 2024 compared to May 2023, while new business volumes decreased by 2%. In the used car finance market, the value of new business fell by 10% in May 2024 compared to the same month in 2023, with new business volumes also decreasing by 5%.
Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, commented on the figures, noting that the point-of-sale consumer car finance market has seen only a slight fall in new business volumes in 2024 so far. She also mentioned that the finance penetration of the private new Battery Electric Vehicles (BEVs) market has continued to improve.
Despite the slight decline in new business volumes, Kilkelly remains optimistic about the future of the consumer car finance market. She expects new business by value to hold steady at around £39 billion in 2024, supported by improved consumer confidence and the prospect of lower interest rates.
If you’re considering financing a new car, it’s important to stay informed about market trends and changes. And as always, if you have any concerns about meeting payments, don’t hesitate to speak to your lender to find a solution that works for you.
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