More U.K. Car Buyers Securing Credit Through Dealerships

The U.K. point-of-sale (POS) consumer new-car finance business grew 16% in value and 11% by volume in the year’s first half, the Finance & Leasing Assn. says.

The market reached the halfway mark in a strong position, with June’s new business up 10% by value year-on-year and 5% in volume.

The association says the percentage of private new-car sales financed by its members through the POS reached 84.9% in the 12 months to June, up from 84.3% in the 12 months to May.

“Despite modest contractions in private new-car registrations in recent months, FLA members have continued to report growth in new business volumes,” FLA Chief Economist Geraldine Kilkelly says in a statement.

Cars bought on finance from dealerships totaled 80,531 in June with a value of £1.53 billion ($2 billion), taking the total for the 12 months through June to 1.04 million units and the financing to £17.5 billion ($22.9 billion).

The number of cars bought on finance by businesses was unchanged at 47,163 units in June, with the 12-month total through June down 1% to 508,205.

Last year, FLA members provided £37 billion ($48.4 billion) to finance the purchase of new and used cars, including more than 80% of private new-car sales.