New figures released by the Finance & Leasing Association (FLA) have revealed that between June 2018 and June 2019, new private car sales through point-of-sale consumer finance topped 91 percent. That’s over nine in every ten private car sales floated via finance.
Last year, automotive marketplace Auto Trader said that it predicted that within ten years, all new cars would be sold via some form of finance.
“The age of traditional ownership is coming to an end,” Auto Trader CFO and COO Nathan Coe said.
If the above figure is anything to go by, that could come sooner than even Auto Trader predicted.
The FLA is also reporting that year-to-date in June 2019, the POS consumer new car finance market fell by five percent. The used market held up a little better, with used car finance down just one percent over the same period.
Overall, the market is down by three percent, though representatives from FLA say this isn’t an unexpected result.
“The POS consumer used car finance market reported a record total for new business volumes in the first half of the year of almost 772,000 vehicles,” said Geraldine Kilkelly, head of research and chief economist at the Finance and Leasing Association.
“While the modest fall in POS consumer new car finance in the first six months of 2019 was in line with wider trends in private new car sales.”