The consumer car finance market reported new business year-on-year growth of 12% in June 2021, according to the Finance & Leasing Association (FLA).

The consumer new car finance market reported an increase of 25% in new business volumes compared with the same month in 2020, while the value of new business grew by 29%. In the first half of 2021, new business volumes in this market were 31% higher than in the same period in 2020.

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The percentage of private new car sales financed by FLA members in the twelve months to June 2021 was 93.2%.

The consumer used car finance market saw new business volumes increase by 6% year-on-year in June, while the value of new business grew by 9%.  In the first half of 2021, new business volumes in this market were also 31% higher than in the same period in 2020.

Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The consumer car finance market continued to report solid growth in June, but as expected growth rates are beginning to moderate. The H1 2021 results show that new business levels have recovered strongly as restrictions to deal with the pandemic have been gradually eased. The value of consumer car finance new business in H1 2021 was only 8% lower than in H1 2019.

“Our latest research suggests that the industry has maintained its optimism about the opportunities for growth despite the risks to the economic recovery from further waves of Covid-19. The FLA’s Q3 2021 industry outlook survey shows that 91% of motor finance providers expected new business growth over the next twelve months.”

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Last month the FLA published its 2021 Annual Review, looking back over a watershed year for the UK motor finance industry.

“It’s difficult to find the words that can sum up the events of the last year,” says Richard Jones, chairman of the FLA, in his foreword. “Our FLA markets are just a small part of the United Kingdom, which itself is a small part of a global human community that has encountered the most testing circumstances in a century.”