Motor finance suppliers are much less optimistic about enterprise prospects within the 12 months forward.
That’s a key discovering of the Finance & Leasing Affiliation (FLA) in its newest quarterly survey.
Geraldine Kilkelly, director of analysis and chief economist on the FLA, stated “The outlook for client 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 Q4 2024 Industry Outlook Survey suggested that 41% of motor finance providers expected some increase in new business over the next year, compared with 76% in the Q3 2024 Survey, while a further 37% expected new business levels to remain stable,” she added.
Kilkelly’s feedback got here because the FLA reported that the patron new automotive finance market 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 have been 4% decrease than in the identical interval in 2023.
The patron used automotive finance market reported a fall within the worth and quantity of recent 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 have 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 information reveals modest falls in new enterprise by worth and quantity reported by the patron automotive finance market in October throughout each the brand new and used automotive finance markets.
The typical advance to shoppers for brand new and used automotive purchases in October grew by 5% and held regular respectively, in contrast with the identical month in 2023.
Desk 1: Vehicles purchased on finance by shoppers via the purpose of sale
New enterprise
Oct 2024
%
change on prev. 12 months
3months to Oct 2024
% change on prev. 12 months
12 months to Oct 2024
% change on prev. 12 months
New vehicles
Worth of advances (£m)
1,347
-2
4,935
10
17,392
2
Variety of vehicles
47,775
-6
174,806
4
622,355
-4
Used vehicles
Worth of advances (£m)
1,787
-1
5,373
-3
21,360
-4
Variety of vehicles
119,959
-1
362,408
-1
1,447,707
-1
Whole vehicles
Worth of advances (£m)
3,135
-1
10,308
3
38,751
-1
Variety of vehicles
167,734
-2
537,214
0
2,070,062
-2
Desk 2: Vehicles purchased on finance by companies
New enterprise
Oct 2024
%
change on prev.
12 months
3
months to Oct
2024
% change on prev. 12 months
12 months to Oct 2024
% change on prev. 12 months
New vehicles
Variety of vehicles
31,871
-6
85,274
-14
357,633
-2
Used vehicles
Variety of vehicles
4,239
-29
11,941
-23
58,829
-1
