Consumer car finance sales surge by 16 per cent

The point-of-sale (POS) consumer new car market saw new business grow 10 per cent by value and five per cent by volume during June, when compared with the same month in 2015.

According to figures released by the Finance and Leasing Association, during the first half of 2016 new business was up 16 per cent by value and 11 per cent by volume. The report also revealed that new business was up 9 per cent by value and 7 per cent by volume in June, with new business in the first half of the year growing 14 per cent by value and 11 per cent by volume.

These figures are good news for car dealers, but it’s important that showrooms are prepared to take advantage of the latest boom. Before adding more new or used cars to your forecourt make sure your motor trade insurance policies are updated to account for any change in quota.

A similar surge has also been seen within the private sales market, where figures suggested the percentage of private new car sales financed by FLA members through POS reached 84.9 per cent in the 12 months to June, up by 0.6 per cent in the 12 months leading to May.

Commenting on the newly released figures, Geraldine Kilkelly, head of research and chief economist at the FLA, confirmed that the market was experiencing impressive double-digit growth across both used and new car markets.

“The POS consumer car finance market reported a strong performance in the first half of 2016, with double-digit growth in both the new and used car finance markets,” Ms Kilkelly added. “Despite modest contractions in private new car registrations in recent months, FLA members have continued to report growth in new business volumes.”