Dealers sold 9% more cars on finance in August

The number of cars sold on finance grew by 9% in August, when compared to figures for the previous year.

Data released by the Finance and Leasing Association, shows the value of new business was up by 14% over the same period.

SMMT figures for the month of August recorded a 23% boost in registrations, as dealers were forced to register models that were not WLTP compliant – ahead of the September introduction of new emissions legislation.

Buyers snapped up alomost 51,000 new cars on finance in the month.

In the last 12 months, the percentage of private new car sales financed by FLA members through fell slightly to 89.6% in the twelve months to August.

Used cars continued to outperform new, according to the figures, with 127,287 used vehicles financed in August.

Geraldine Kilkelly, head of research and chief economist at the Finance and Leasing Association, said: “A boost to private new car sales in August ahead of changes to emission standards in September contributed to the increase in new business volumes reported by the POS consumer new car finance market. In the first eight months of 2018, new business volumes in this market were at a similar level to the same period in 2017.

“The average advance reported by the POS consumer car finance market in August was 5% higher than in the same month in 2017, in line with growth in new and used car prices over the same period.”