The consumer used car finance market witnessed a 7% reduction in the value of new business. Credit: New Africa/Shutterstock.

The latest data from the Finance & Leasing Association (FLA) indicates a slight downturn in the consumer car finance sector in August 2024, with a 2% decrease compared with the same month in the previous year.

New business value also saw a 1% reduction during the same period.

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Despite the overall decrease, the consumer new car finance market saw an increase in new business by value, which was 13% higher than in August 2023.

Additionally, new business volumes in this segment grew by 7%. However, over the eight-month period leading up to August 2024, new business volumes in the new car finance market were 6% lower than in the corresponding period in 2023.

The consumer used car finance market witnessed a 7% reduction in the value of new business and a 4% fall in new business volumes in August 2024 compared with August 2023.

Over the eight months to August 2024, the used car finance market also saw a slight decrease (1%) in new business volumes year-on-year.

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FLA research director and chief economist Geraldine Kilkelly said: “August saw the consumer new car finance market report only its second month of growth in new business volumes since the beginning of this year.

“Overall, the point-of-sale consumer car finance market has seen a modest contraction in new business by both value and volume so far in 2024.

“The FLA’s Q3 2024 Industry Outlook Survey suggested that motor finance providers are cautiously optimistic of an improvement in economic conditions, with three-quarters expecting some increase in new business over the next 12 months.

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”