New data released by the Finance & Leasing Association (FLA) reveals an 8% increase in consumer car finance new business volumes in April compared to April 2023.
The value of new business also rose by 7% during this period.
Despite this growth, the first four months of 2024 saw a 1% decrease in new business by both value and volume compared to the same period in 2023.
In the consumer new car finance market, the value of new business in April 2024 was 9% higher than in April 2023, with new business volumes up by 2%.
However, from January to April 2024, new business volumes in this market declined by 6% compared to the same period in 2023.
For the consumer used car finance market, April saw a 6% increase in the value of new business and an 11% rise in new business volumes compared to April 2023. Over the first four months of 2024, new business volumes in this market were 1% higher than the same period in 2023.
Geraldine Kilkelly, director of research and chief economist at the FLA, commenting on the figures, said: “The strong performance in April can in part be attributed to a shorter working month in April 2023 due to the timing of Easter. There has also been a significant improvement in consumer confidence with better news on inflation and the prospect of lower interest rates leading to greater optimism about personal finances.
“The General Election campaigns are in full swing but for many households the key to maintaining confidence will be a reduction in interest rates in the second half of 2024. Our latest research suggested that the point-of-sale consumer car finance market would see new business by value hold steady in 2024 at around £39 billion.”