Consumer finance new business remained stable in August

Retail store and online credit new business in August was at a similar level to the same month in 2018, while new business provided through credit cards and personal loans together fell by one percent.

Meanwhile, new business volumes in the point of sale (POS) consumer new car finance market fell by two percent in August, compared with the same month in 2018, while the value of new business grew by two percent over the same period.

The percentage of private new car sales financed by FLA members through the POS remained at 91.2 percent in the twelve months to August 2019.

The POS consumer used car finance market reported that new business fell two by volume and one percent by value in August, compared with the same month last year.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “Consumer finance new business fell by one percent in the eight months to August, in line with expectations. We continue to expect this market to report broadly stable new business in 2019 as a whole compared with 2018.

“The POS consumer new car finance market reported a modest fall in new business volumes in August, as the market continued to track private new car sales. New business volumes in the POS consumer car finance market overall fell by one percent in the eight months to August, in line with expectations.”

In the second charge mortgage market, volumes were up by 12 percent in August, its twelfth consecutive month of double-digit new business growth.

In the first eight months of 2019, new business volumes were 21 percent higher than in the same period in 2018.