New automobile finance volumes dropped by 3% in October year-on-year, in accordance with the newest figures from the Finance and Leasing Affiliation (FLA).

The corresponding worth of recent enterprise was 2% decrease over the identical interval.  Within the 10 months to October 2023, new enterprise volumes remained 6% decrease than in the identical interval in 2022.

Geraldine Kilkelly, director of analysis and chief economist on the FLA, stated: “The buyer automobile finance market stays remarkably resilient regardless of the subdued financial outlook, with the worth of recent enterprise anticipated to be solely 4% decrease in 2023 than in 2022.   

“FLA’s newest analysis additionally means that the worth of client automobile finance new enterprise in 2024 is anticipated to develop by 2% to £40.1 billion.”

The FLA is predicting the worth of recent enterprise offered to customers for brand spanking new automobile purchases to develop by 9% in 2024 to £18.9bn, whereas client used automobile finance new enterprise by worth is anticipated to fall by 4% in 2024 to £21.2bn.

Kilkelly added: “As at all times, clients who’re anxious about assembly funds ought to converse to their lender as quickly as attainable to discover a resolution.”

The most recent FLA knowledge confirmed client new automobile finance reported new enterprise up 1% by worth however 2% decrease by quantity in October in contrast with the identical month in 2022.  Within the 10 months to October 2023, new enterprise volumes on this market remained 5% decrease than in the identical interval in 2022.

The client used automobile finance market additionally reported a fall in new enterprise in October of 5% by worth and 4% by quantity in contrast with the identical month in 2022.  12 months-to-date as much as October 2023, new enterprise volumes on this market have been 6% decrease than in the identical interval in 2022.

Mark Attwell, director at AA Automotive Finance, stated: “Though new registration plates fuelled an uplift in automobile finance volumes in September, the momentum sadly didn’t final into the next month.

“Whereas automobile finance figures are down in comparison with final yr, new and used automobile gross sales proceed to rise, which may sign that extra individuals are selecting to purchase outright. 

“Automotive manufacturing can also be on the rise, with a 31.6% surge in new automobiles produced in October. This speedy manufacturing turnaround is getting drivers behind the wheel sooner, and will assist to spice up finance volumes within the new yr.

“A rise in client confidence now rates of interest are extra regular and inflation is anticipated to fall also needs to assist to spice up finance-backed automobile purchases within the new yr.”