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The value of cars sold through consumer financing will fall by 6% in 2023 according to the Finance & Leasing Association (FLA).
Geraldine Kilkelly, research director and chief economist at FLA, said: “While the economic outlook has improved, challenges remain for households and businesses as they face the impact of higher prices, taxes and interest rates. We expect the consumer auto finance market to report a decline in new business by around 6% in 2023 as a whole.”
Kilkelly’s comments come as the FLA released figures showing the consumer new auto finance market reported new business up 3% by value in February compared to the same month in 2022, while new business volumes remained steady.
In the first two months of 2023, the volume of new business in this market was 6% lower compared to the same period in 2022.
The consumer used car financing market reported a decline in new business of 8% by value and 6% by volume compared to the same month in 2022.
In the first two months of 2023, the volume of new business in this market fell by 3% compared to the same period in 2022.
| Table 1: Cars purchased on a consumer financing basis through the point of sale | ||||||
| New business | February 2023 | % change in the previous year | 3 months to February 2023 | % change in previous year | 12 months to February 2023 | % change in previous year |
| New car | ||||||
| Down payment value (£m) | 789 | 3 | 3.156 | -4 | 17,228 | -4 |
| Number of cars | 31,939 | 0 | 121,837 | -10 | 679,280 | -10 |
| Used car | ||||||
| Down payment value (£m) | 1,833 | -8 | 5,084 | -5 | 23,464 | 9 |
| Number of cars | 122,649 | -6 | 345,264 | -2 | 1,543,765 | 2 |
| Number of cars | ||||||
| Down payment value (£m) | 2,622 | -5 | 8,240 | -5 | 40,692 | 3 |
| Number of cars | 154,588 | -5 | 467,101 | -4 | 2,223,045 | -2 |
| Table 2: Cars purchased financed by businesses | ||||||
| New business | February 2023 | % change to before year | 3 month to February 2023 | % change in previous year | 12 months to February 2023 | % change in previous year |
| New car | ||||||
| Number of cars | 21,532 | 34 | 77,448 | 28 | 291,664 | -3 |
| Used car | ||||||
| Number of cars | 3,622 | -47 | 13.176 | -31 | 77,125 | 35 |
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