Client automobile finance market drops by 2% in October
UK shopper automobile finance new enterprise volumes fell in October 2024 by 2% in contrast with the identical month in 2023, in accordance with the most recent knowledge from the Finance and Leasing Affiliation (FLA).
The figures do not replicate the complete potential impression of the ruling by the Court docket of Attraction in late October, which decided that motor finance brokers should present full disclosure on commissions when arranging automobile loans.
The corresponding worth of latest enterprise fell by 1% over the identical interval. Within the ten months to October 2024, new enterprise was 1% decrease by quantity in contrast with the identical interval in 2023.
The patron new automobile finance market reported new enterprise by worth in October 2% decrease than in the identical month in 2023, whereas new enterprise volumes fell by 6%. Within the ten months to October 2024, new enterprise volumes on this market had been 4% decrease than in the identical interval in 2023.
The patron used automobile finance market reported a fall within the worth and quantity of latest enterprise in October of 1% in contrast with the identical month in 2023. Within the ten months to October 2024, new enterprise volumes on this market had been 1% decrease than in the identical interval in 2023.
Geraldine Kilkelly, director of analysis and chief economist on the FLA, stated: “Our newest market knowledge reveals modest falls in new enterprise by worth and quantity reported by the patron automobile finance market in October throughout each the brand new and used automobile finance markets.
“The common advance to shoppers for brand spanking new and used automobile purchases in October grew by 5% and held regular respectively, in contrast with the identical month in 2023.
“The outlook for shopper spending has weakened with the prospect of slower wage development and better taxes weighing on the restoration in actual family disposable incomes. The FLA’s This autumn 2024 Trade Outlook Survey steered that 41% of motor finance suppliers anticipated some improve in new enterprise over the following 12 months, in contrast with 76% within the Q3 2024 Survey, whereas an extra 37% anticipated new enterprise ranges to stay secure.
“As all the time, prospects who’re frightened about assembly funds ought to converse to their lender as quickly as potential to discover a answer.”
