The motor finance market reported development in each the worth and quantity of recent enterprise for the primary time since March throughout August buying and selling, the Finance and Leasing Affiliation (FLA) has reported.
FLA client automobile finance information confirmed that new enterprise volumes grew 5% (to 173,243 models) year-on-year as the worth of recent enterprise elevated by 13% (to £2.99bn) to go away new enterprise volumes 5% up year-to-date.
The used automobile sector was the star performer amid ongoing new automobile provide constraints, with year-on-year development of 19% by worth (to £6.1bn) and eight% by quantity (to 397,989).
New automobile finance market reported development in new enterprise of two% by worth (to £3.7bn), however a fall of 6% by quantity (to 146,684) within the historically quiet month earlier than the September number ‘plate change period. New enterprise volumes are actually 6% down year-to-date.
Companies funding their automobile purchases with finance generated a 70% enhance in volumes (to five,160 models) for the motor finance sector in August, in the meantime, as the quantity of recent vehicles funded in the course of the month declined by 14% to 17,872.
FLA director of analysis and chief economist Geraldine Kilkelly stated: “In August, the patron automobile finance market reported development in each the worth and quantity of recent enterprise for the primary time since March this 12 months, buoyed by one other sturdy efficiency by the patron used automobile finance market.
“Development in common advances offered for client new and used automobile purchases remained strong regardless of some softening within the development of recent and used automobile costs.”
Kilkelly stated that finance suppliers should be able to help customers because the cost-of-living disaster takes its toll on family funds this winter, nonetheless.
Echoing current sentiment expressed by the Financial Conduct Authority (FCA), she stated: “Through the coming months when many customers could also be dealing with elevated pressures on their family incomes, the motor finance business stays dedicated to assembly demand for the financing of automobile purchases and offering focused help to prospects who might have it.
“As all the time, prospects who’re apprehensive about assembly funds ought to converse to their lender as quickly as attainable to discover a answer.”