Statistics from the Finance & Leasing Association (FLA) have shown car finance is continuing to grow at a greater rate than all other forms of consumer lending in the UK.
According to the FLA, car finance in November 2012 was worth £1.35bn, just under half the £2.81bn figure for credit cards and personal loans, but up 25% on November 2011, while credit cards and personal loans dropped 1% by value year-on-year.
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The growth rate for motor finance was also greater than for store instalment credit, up 12% year-on-year to £249m, and for second mortgages, up 11% to £31m.
Over the three months to November, car finance was up 26% by value year-on-year to £5bn, while store instalment credit grew 17%, second mortgages grew 13% and credit cards and personal loans dropped 4%.
In the 12 months to November, car finance totalled £16.47bn, a year-on-year rise of 21%, credit cards and personal loans dipped 1% to £32.49bn, store instalment credit rose 14% to £2.75bn, second mortgages rose 14% to £323m and store cards dropped 12% to £1.51bn.
While car finance rose as a proportion of consumer lending from 25.98% in the 12 months to November 2011 to 30.02% in the following 12 months, credit cards and personal loans dropped from 63.12% to 59.24%.
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By GlobalDatarichard.brown@timetric.com
