UK consumer car finance new business volumes fell in October 2024 by 2% compared with the same month in 2023, according to the latest data from the Finance and Leasing Association (FLA).
The figures don’t reflect the full potential impact of the ruling by the Court of Appeal in late October, which determined that motor finance brokers must provide full disclosure on commissions when arranging car loans.
The corresponding value of new business fell by 1% over the same period. In the ten months to October 2024, new business was 1% lower by volume compared with the same period in 2023.
The consumer new car finance market reported new business by value in October 2% lower than in the same month in 2023, while new business volumes fell by 6%. In the ten months to October 2024, new business volumes in this market were 4% lower than in the same period in 2023.
The consumer used car finance market reported a fall in the value and volume of new business in October of 1% compared with the same month in 2023. In the ten months to October 2024, new business volumes in this market were 1% lower than in the same period in 2023.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “Our latest market data shows modest falls in new business by value and volume reported by the consumer car finance market in October across both the new and used car finance markets.
“The average advance to consumers for new and used car purchases in October grew by 5% and held steady respectively, compared with the same month in 2023.
“The outlook for consumer spending has weakened with the prospect of slower wage growth and higher taxes weighing on the recovery in real household disposable incomes. The FLA’s Q4 2024 Industry Outlook Survey suggested that 41% of motor finance providers expected some increase in new business over the next year, compared with 76% in the Q3 2024 Survey, while a further 37% expected new business levels to remain stable.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”