The consumer new car finance deals agreed in August were worth more than £1bn,
The UK consumer car finance market grew slightly in August despite a decline in the overall new car market, according to new figures. Data from the Finance and Leasing Association (FLA) showed a small increase in the number of cars acquired by private customers using finance deals.
Over the course of the month, private consumers agreed finance deals on almost 178,000 cars, up one percent on the same month in 2019. In total, FLA members dished out more than £2.7 billion in advances – an increase of eight percent on August last year.
The lion’s share of the growth was found in the used car market, where private customers acquired some 128,126 cars on finance last month. That’s a two-percent increase on the same period in 2019, but the value of those deals shot up by a massive 10 percent. As a result, the total value of advances came to £1.67 billion.
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The new car market saw more modest results, with the number of cars acquired on finance fell by one percent to just over 49,500. That is, perhaps, no surprise given figures from the Society of Motor Manufacturers and Traders (SMMT) showed a drop in new car sales of almost six percent during August.
More surprising, though, is that the value of advances still rose by five percent to hit £1.04 billion, despite the doom and gloom surrounding the market. But figures also show finance deals have accounted for around 93.5 percent of new car sales in the past 12 months.
But with the impact of coronavirus, the lockdown and the current economic uncertainty shrouding the country and the car industry, the