News Article

Consumer Credit

2015 sees strong growth in consumer car finance

By CreditMan Friday, February 5, 2016

New figures released today by the Finance & Leasing Association (FLA) show 22% growth in point-of-sale consumer new car finance volumes in December, and 10% growth in 2015 as a whole.

The percentage of private new car sales financed by FLA members through dealerships reached 81.4% in 2015, up from 75.9% in 2014.

The point-of-sale consumer used car finance market also saw strong growth in December, with new business volumes up by 8%. In 2015 as a whole, new business volumes increased by 9%.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “It was another record year for the point-of-sale consumer car finance market as new business volumes reached more than 2.1 million. But while growth in 2015 remained robust, it was slower than in 2014, and in line with expectations.

“The strength of the market in December reflects strong consumer confidence buoyed by low inflation, interest rates and unemployment. The FLA’s latest retail motor finance confidence survey suggests that we will see new business growth in 2016 of up to 10%.”