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Consumer used car finance new business by value is forecast to fall by 7.7% in 2023 to £21.9bn, according to the latest forecast from the Finance & Leasing Association (FLA).
The forecast accompanies sales performance for April which saw used car finance fall by 17% by alue and 14% by volume in April.
The value of new business provided to consumers for new car purchases is expected to grow by 3.5% in 2023 to £17.9 billion, according to the FLA.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The performance of the consumer car finance market in April reflected the ongoing uncertainty about the economic outlook as core inflation continued to rise and consumers face the prospect of further increases in Bank Rate over the summer.
“Recent trends in the business and consumer new car finance markets also reflect the wider trends in new car registrations which have shown a strong recovery in fleet registrations but a more subdued private market as supply shortages have eased.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”