Consumer car finance new business held steady  in December

Consumer car finance new business volumes held steady in December 2024 compared with the same month in 2023, according to new figures released today by the Finance & Leasing Association (FLA).

The corresponding value of new business grew by 6% over the same period. In 2024 as a whole, new business was 2% lower by volume compared with 2023.

The consumer new car finance market reported new business by value in December 15% higher than in the same month in 2023, while new business volumes grew by 7%.  In 2024 overall, new business volumes in this market were 2% lower than in 2023.

The consumer used car finance market reported a fall in the value of new business in December of 2% compared with the same month in 2023, while new business volumes decreased by 4%.  In 2024 overall, new business volumes in this market were 1% lower than in 2023.

“The consumer car finance market ended the year on a positive note with a second consecutive month of growth in the value of new business.  In 2024 overall, new business by value reached £39.0 billion, a similar level to 2023, while new business volumes fell by only 2% to 2.1 million.

“The recent cut in Bank rate will help to ease the pressure on household incomes but consumer spending is expected to remain subdued. FLA’s latest industry outlook survey suggested that over 40% of motor finance respondents expected some increase in new business over the next year.”

Table 1: Cars bought on finance by consumers through the point of sale
New business	Dec 2024	%  change on prev. year	3 months to Dec 2024	% change on prev. year	12 months to Dec 2024	% change on prev. year
New cars
Value of advances (£m)	1,254	15	4,041	8	17,706	5
Number of cars	41,205	7	137,754	1	627,257	-2
Used cars
Value of advances (£m)	1,303	-2	4,667	-2	21,281	-4
Number of cars	84,607	-4	308,419	-3	1,438,805	-1
Total cars
Value of advances (£m)	2,557	6	8,708	2	38,988	0
Number of cars	125,812	0	446,173	-2	2,066,062	-2
Table 2: Cars bought on finance by businesses
New business	Dec 2024	%  change on prev. year	3 months to Dec 2024	% change on prev. year	12 months to Dec 2024	% change on prev. year
New cars
Number of cars	29,829	-10	91,654	-9	351,100	-6
Used cars
Number of cars	3,479	-30	11,631	-30	55,545	-11