Strong demand for motor and consumer finance continues
Good news was announced this week for both the auto finance industry and UK businesses. The FLA has reported that demand for motor finance has continued to stay strong throughout this year. New business volumes were reported as 29% higher in March than the same month in 2013, hinting at the strongest growth in the consumer used car finance market so far this year. Recent figures released by the Finance & Leasing Association (FLA) show consumer new car finance volumes were up by 21% in March compared with the same month last year. They were also up by 23% in Q1 2014.
The FLA also reported on the rise of new consumer finance, which grew by 19% in March, compared with the same month last year, and was up 17% in Q1 of 2014. The figures show that growth in new business extended beyond the point-of-sale market into credit card finance and personal loans, with an increase in these two sectors of 12% in March, and a 10% rise in Q1 this year.
Figures and data tables below are from the FLA's latest press release:
Geraldine Kilkelly, Head of research and Chief Economist at the FLA, said:
“Growth in the consumer motor finance market showed no sign of weakening in March. Personal Contract Purchase remains the most popular finance option when consumers buy a new car from dealerships. It has also grown in popularity in the used car market, but the majority of used cars financed in the showroom are on hire purchase.”
Please visit the FLA website for more data and details on the latest finance report by clicking here.
These are much welcomed positive signs and important factors pointing to economic recovery and increased consumer confidence levels. Encouraging consumer news for both individuals and businesses that may have been waiting to see if the economy improves this year before considering upgrading or adding to their van fleets. Perhaps now is the right time to look for a new van or car? You can find great competitive finance deals on a wide selection of new vans and cars to lease or contract hire at Low Cost Vans.
The FLA also reported on the rise of new consumer finance, which grew by 19% in March, compared with the same month last year, and was up 17% in Q1 of 2014. The figures show that growth in new business extended beyond the point-of-sale market into credit card finance and personal loans, with an increase in these two sectors of 12% in March, and a 10% rise in Q1 this year.
Figures and data tables below are from the FLA's latest press release:
| Table 1: Cars bought on finance by consumers through dealerships | ||||||
| Mar-14 | % change on prev. year | 3 months to Mar 2014 | % change on prev. year | 12 months to Mar 2014 | % change on prev. year | |
| New cars | ||||||
| Value of advances (£m) | 2,390 | +26 | 3,819 | +28 | 12,843 | +27 |
| Number of cars | 153,985 | +21 | 250,697 | +23 | 844,091 | +21 |
| Used cars | ||||||
| Value of advances (£m) | 962 | +39 | 2,671 | +32 | 9,426 | +26 |
| Number of cars | 95,370 | +29 | 269,102 | +24 | 967,988 | +21 |
| Table 2: Cars bought on finance by businesses | ||||||
| Mar-14 | % change on prev. year | 3 months to Mar 2014 | % change on prev. year | 12 months to Mar 2014 | % change on prev. year | |
| New cars | ||||||
| Number of cars | 47,076 | +26 | 102,350 | +12 | 420,329 | +6 |
| Used cars | ||||||
| Number of cars | 2,920 | -34 | 9,760 | -55 | 47.156 | -36 |
Geraldine Kilkelly, Head of research and Chief Economist at the FLA, said:
“Growth in the consumer motor finance market showed no sign of weakening in March. Personal Contract Purchase remains the most popular finance option when consumers buy a new car from dealerships. It has also grown in popularity in the used car market, but the majority of used cars financed in the showroom are on hire purchase.”
Please visit the FLA website for more data and details on the latest finance report by clicking here.
These are much welcomed positive signs and important factors pointing to economic recovery and increased consumer confidence levels. Encouraging consumer news for both individuals and businesses that may have been waiting to see if the economy improves this year before considering upgrading or adding to their van fleets. Perhaps now is the right time to look for a new van or car? You can find great competitive finance deals on a wide selection of new vans and cars to lease or contract hire at Low Cost Vans.
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