Car finance market worth close to £4.3 billion in September

The consumer car finance market was worth almost £4.3 billion in September, according to new data released this week.

Figures from the Finance and Leasing Association (FLA) reported a four per cent increase in the number of cars financed by its members in September, compared to the same period last year.

It means that during September more than a quarter of a million cars were financed, representing a combined value of £4.28 billion.

The majority of these cars were used examples. Almost 129,000 used vehicles were bought with some form of finance deal during September, a rise of nine per cent on the same month in 2018. It meant that the used market value increased by 12 per cent year-on-year.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “In September, the POS consumer used car finance market reported its strongest growth since August 2018, which contributed to an increase in new business volumes of 5% in Q3 2019 as a whole.

“The POS consumer car finance market overall reported stable new business volumes in the first nine months of 2019, in line with expectations.”

The results contrast recently announced new car market figures released by the Society of Motor Manufacturers and Traders (SMMT), which reported a 1.3 per cent increase in overall registrations during September.