Press Release

FLA MONTHLY MOTOR FINANCE STATISTICS

09 January 2007

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

Overview

• The total number of new cars financed in November was down 5% on the same month a year ago. The number of consumer new cars financed via dealerships decreased 11% over this period.
• The used car sector reported new business volumes down 13% in November due to a 15% fall in the number of used cars bought on finance by consumers.

Industry comment

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

“The concern over dealer finance continues with this latest set of figures demonstrating that the market remains weak.  Penetration of the private new car market reached a new low with just 46.0% of private new car registrations financed via dealerships.  This compares with 57.0% at the same time four years ago and underlines the urgency of dealers and finance houses working together to reverse the trend.  Key is to engage prospective consumers before they have decided how to fund their vehicle. Already FLA has set up a consumer-facing website http://www.financingyourcar.org.uk/, and we are developing a number of initiatives with dealers including accredited training.”