Consumer car finance trends show decline in June 2024

Over the first six months of 2024, new business volumes in this sector were down by 7% compared to the same period in 2023. Credit: why kei on Unsplash.

The latest data from the Finance & Leasing Association (FLA) indicates a downturn in consumer car finance new business volumes in June 2024, with an 11% decrease compared to June 2023.

New business value also saw a 10% reduction during the same period.

The first half of 2024 experienced a 3% drop in new business by both value and volume compared to the previous year.

The consumer new car finance market reported a 6% decrease in new business value in June 2024 compared to the same month in the previous year, while volumes dropped by 12%.

Over the first six months of 2024, new business volumes in this sector were down by 7% compared to the same period last year.

The consumer used car finance market was not immune to this trend, with a 13% fall in the value of new business and a 10% drop in volumes in June 2024, compared to June 2023.

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For the first half of the year, the market saw a 1% dip in new business volumes year-on-year.

FLA director of research and chief economist Geraldine Kilkelly noted: “In the first half of 2024, the consumer car finance market reported a modest fall in new business despite challenging economic conditions.

“The fall in the consumer new car finance market reflects trends in private new car sales and the shift by consumers to using salary sacrifice schemes to finance new battery-electric vehicle purchases.

“Our latest research suggests that the value of new business in the consumer car finance market will fall by 1% in 2024 to £38.5bn, reflecting growth of 1% in the consumer new car finance market to £17.1bn and a 3% fall in the consumer used car finance market to £21.4bn.”