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Consumer Credit

Car finance grows steadily in November

By CreditMan Friday, January 16, 2015

Figures released today by the Finance & Leasing Association (FLA) show 7% growth in consumer new car finance volumes during November 2014, compared with the same month the previous year. In the twelve months to November, this market reported growth of 13%. The percentage of private new car sales financed through dealerships by FLA members held steady at 75.9% over the same period.

There was modest growth also in consumer used car finance volumes, up 5% on November 2013. In the twelve months to November, this market reported volumes up by 15%.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“Car finance provided through dealerships is popular with consumers because of the range of finance products on offer. Personal Contract Purchase (PCP) has become a popular choice for many consumers, reflecting a change in attitudes to car ownership. But many customers still want to own their car outright and as a result we have also seen growth in hire purchase over the last year.”