Recent automobile finance volumes dropped by 3% in October year-on-year, based on the most recent figures from the Finance and Leasing Association (FLA).
The corresponding value of recent business was 2% lower over the identical period. Within the 10 months to October 2023, recent business volumes remained 6% lower than in the identical period in 2022.
Geraldine Kilkelly, director of research and chief economist on the FLA, said: “The patron automobile finance market stays remarkably resilient despite the subdued economic outlook, with the worth of recent business expected to be only 4% lower in 2023 than in 2022.
“FLA’s latest research also suggests that the worth of consumer automobile finance recent business in 2024 is predicted to grow by 2% to £40.1 billion.”
The FLA is predicting the worth of recent business provided to consumers for brand new automobile purchases to grow by 9% in 2024 to £18.9bn, while consumer used automobile finance recent business by value is predicted to fall by 4% in 2024 to £21.2bn.
Kilkelly added: “As all the time, customers who’re anxious about meeting payments should speak to their lender as soon as possible to search out an answer.”
The most recent FLA data showed consumer recent automobile finance reported recent business up 1% by value but 2% lower by volume in October compared with the identical month in 2022. Within the 10 months to October 2023, recent business volumes on this market remained 5% lower than in the identical period in 2022.
The consumer used automobile finance market also reported a fall in recent business in October of 5% by value and 4% by volume compared with the identical month in 2022. Yr-to-date as much as October 2023, recent business volumes on this market were 6% lower than in the identical period in 2022.
Mark Attwell, director at AA Automotive Finance, said: “Although recent registration plates fuelled an uplift in automobile finance volumes in September, the momentum unfortunately didn’t last into the next month.
“While automobile finance figures are down in comparison with last 12 months, recent and used automobile sales proceed to rise, which could signal that more individuals are selecting to purchase outright.
“Automotive manufacturing can also be on the rise, with a 31.6% surge in recent vehicles produced in October. This speedy production turnaround is getting drivers behind the wheel faster, and will help to spice up finance volumes in the brand new 12 months.
“A rise in consumer confidence now rates of interest are more regular and inflation is predicted to fall also needs to help to spice up finance-backed automobile purchases in the brand new 12 months.”
This Article First Appeared At www.am-online.com
