New Car Finance Sales Plummet in Q2
Analytical reports detailing Q2 vehicle sales have now been published, and it appears as though it’s looking bleak for the finance market as new car finance sales fell by a massive 8% in June, and reports indicate that overall sales have dropped off by 7% for the second quarter of the working year.
It’s not all doom and gloom however, as it appears that the used car financed market may have picked up the slack from the falling sales of new vehicles. Indeed, the report indicated that despite a 7% drop in new car finance sales, used car finance sales have risen by 9% in Q2, and experienced a 12% increase in June.
The figures have come from the Finance and Leasing Association (FLA) and show that the POS (point of sale) customer new car finance business value had remained at a plateau over the same period. Percentages of private sales of new vehicles financed by members of the FLA through the point of sale was 86.3 in the last year, which remained unchanged compared to the previous 12 months.
Geraldine Kilkelly, head of research and chief economist at the FLA, had this to say about the recent findings:
“The recent trends in the consumer new car finance market very much reflect those in private new car sales. In the first half of 2017, the POS consumer car finance market reported a fall in new business volumes of only 1%, which remains in line with industry expectations of a broadly stable picture for the year as a whole.”
So despite some uncertainty over new car finance sales in q2 of this year, the market seems to be self-stabilising, and set to maintain predicted outcomes heading into the latter period of the year.
Whether June set out to be an anomalous month, or indeed showed warning indicators of the current marketplace is still yet to be determined, but economists at the FLA remain positive about the continual growth of the finance market.
With finance becoming an ever more attractive option to those looking for newer vehicles, it is difficult to presume that the finance market will experience a drastic fall in its economy any time soon.