Press Release

FLA MONTHLY MOTOR FINANCE STATISTICS

25 August 2006                  

FLA (Finance & Leasing Association) today released figures for the motor finance industry for July 2006.

Overview

• July data revealed mixed results for the motor finance industry, with strong growth in the business sector but decline in the consumer sector.
• The new car sector reported the number of cars financed up 5% compared with July 2005 with a 21% increase in the business sector offset by a 14% decrease in consumer new cars.
• The used car sector reported new business volumes down 13% in July with both the business and consumer sectors down on the same month a year ago.

Industry comment

Commenting on the latest figures, Geraldine Kilkelly, FLA’s Head of Research, said:

“This latest set of results is a setback to the tentative signs of improvement in the dealer finance market reported in recent months and the penetration rate for this sector is once again down. Weak demand for consumer new cars and an increasingly competitive market place continue to have an adverse impact on point of sale finance”.