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Motor finance firms are ‘cautiously optimistic’ about seeing an increase in business in the coming 12 months.
That’s the conclusion of the Finance & Leasing Association (FLA) from its Industry Outlook Survey.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The industry remains cautiously optimistic about the prospects for future growth, with three-quarters of motor finance respondents to the FLA’s Q2 2023 Industry Outlook Survey anticipating some increase in new business over the next year.”
Kilkelly made the comments as the FLA reported consumer new car finance market in May fell 8% by value and 9% by volume.
In the five months to May 2023, new business volumes in this market were 9% lower than in the same period in 2022.
The consumer used car finance market reported a fall in new business in May of 11% by value and 10% by volume compared with the same month in 2022.
In the five months to May 2023, new business volumes in this market were 7% lower than in the same period in 2022.
Kilkelly added: “May saw the continuation of recent trends with a strong performance in the business new car finance market offset by lower levels of new business in both the consumer new and used car finance markets.”