Press Release

FLA MONTHLY MOTOR FINANCE STATISTICS  

16 May 2007

FLA (Finance & Leasing Association) today released figures for the motor finance industry for March 2007.

Overview

· The total number of new cars financed in March remained at a similar level to the same month a year ago.  Growth of 1% in the number of new cars bought on finance by consumers was offset by a similar rate of contraction in the business sector.

· The used car sector reported new business volumes down 10% in March, which reflected the rate of decline 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 March issue of the 07 registration plate has led to the first pick up in the private new car market since this time last year. The rate of growth in dealer finance for new consumer cars was modest at just 1% and as a result the finance penetration rate for this sector fell further to stand at 45.8%. April’s results will give a better idea of the impact of the new plate overall but clearly there is still work to be done on changing consumer perceptions in an increasingly competitive market place. FLA is taking initiatives to address this, including a dedicated website www.financingyourcar.org.uk which provides an impartial guide to consumers looking to purchase a car.”

Business	March 2007	% Change	Q1 2007	% Change
Finance provided (£m)   New cars Used cars   Cars financed (No.)   New cars Used cars	1,805 601       149,603 59,425	3% -2%       0% -10%	3,273 1,646       272,508 166,246	1% -1%       -1% -9%