New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes held steady in December 2024 compared with the same month in 2023. 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.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“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.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
| 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 |
Note to editors:
- Consumer car finance reported in these figures refers to finance obtained through the point of sale.
- In 2024, FLA members provided £155 billion of new finance to UK businesses and households. £115 billion of this was in the form of consumer credit, almost a third of total new consumer credit written in the UK in 2024. £52 billion of it supported the purchase of new and used cars, including around 80% of private new car registrations.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
