UK Car Finance Market Report 2024
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This report explores the UK car finance market. The included market size, forecast, and segmentation provide a foundation for data-backed consumer analysis, elevating your insight strategy. Below, we’ve provided the market landscape and some key statistics.
The consumer car finance market contracted in 2023, with both volume and value of new business falling by 5%. Mintel estimates that point-of-sale car finance sales will see slight growth in 2024. Consumer caution has persisted, affecting demand for major purchases and borrowing. However, the outlook has improved as inflationary pressures ease and borrowing rates start to decline, which should boost confidence and interest in car finance in the second half of the year.
Distrust of car finance providers is a barrier among consumers. 48% of drivers don’t trust car finance lenders to act in their customers’ best interests. Car finance providers should prioritise trust-building initiatives for all age groups, especially in light of the FCA’s intervention in the market and the ongoing review of the impact of discretionary commission models.
The shift towards hybrid/electric will expand car finance opportunities and prompt innovation. The growing EV market highlights the need to support consumers who are less familiar with the product and potential finance options. For example, in 2024, Black Horse launched an EV Hub to provide valuable insights into used electric vehicles.
This report focuses on car finance products sold to consumers at the point of sale. The most popular car finance products are hire purchase (HP), personal contract purchase (PCP), and personal contract hire (PCH) agreements.
This report was written by Utku Tansel. Utku is a member of the European Retail Team and is responsible for research and writing reports/content. He has almost two decades of success in driving global thought leadership, project/content management experience delivering strategic business intelligence and actionable insight to major multinational companies.
The shift to hybrid/electric cars, flexible financing models and green car finance provides scope for growth and innovation for the car finance market.
Utku Tansel
Senior Retail Analyst
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Please Note: All of the figures, graphs, and tables in this sample report have been redacted.