The consumer car finance market reported year-on-year growth in new business volumes of 7% in September, according to the latest figures from the Finance and Leasing Association (FLA).
In the first nine months of 2020, new business volumes in this market were 22% lower than in the same period in 2019.
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The consumer new car finance market reported new business volumes up by 5% in September 2020 compared with the same month in 2019. In the nine months to September 2020, new business volumes in this market fell by 27% compared with the same period in the previous year.
The percentage of private new car sales financed by FLA members in the twelve months to September 2020 reached 94.5%, the second highest annual penetration rate on record.
The consumer used car finance market reported growth in new business volumes of 9% in September 2020 compared with the same month in 2019. In the nine months to September 2020, new business volumes in this market fell by 19% compared with the same period in the previous year.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The FLA’s latest figures show that the consumer car finance market has played a significant role in the UK’s economic recovery following the easing of the first lockdown restrictions in June.
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By GlobalData“As we enter a new phase of national lockdowns across the UK, it is vital that that the Government and Bank of England support all lenders, including non-banks, by providing direct access to funding. This will enable the motor finance industry to meet the ongoing demand for forbearance and new credit.”
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business | Sep 2020 | % change on prev. year | 3 months to Sep 2020 | % change on prev. year | 12 months to Sep 2020 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 2,898 | 9 | 5,661 | 11 | 16,120 | -18 |
| Number of cars | 128,345 | 5 | 254,387 | 5 | 732,842 | -22 |
| Used cars | ||||||
| Value of advances (£m) | 1,854 | 13 | 5,470 | 14 | 16,302 | -11 |
| Number of cars | 140,347 | 9 | 414,822 | 7 | 1,269,983 | -14 |
| Total cars | ||||||
| Value of advances (£m) | 4,752 | 11 | 11,131 | 13 | 32,421 | -14 |
| Number of cars | 268,692 | 7 | 669,209 | 6 | 2,002,825 | -17 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Sep 2020 | % change on prev. year | 3 months to Sep 2020 | % change on prev. year | 12 months to Sep 2020 | % change on prev. year |
| New cars | ||||||
| Number of cars | 27,098 | -9 | 71,853 | -28 | 281,778 | -35 |
| Used cars | ||||||
| Number of cars | 4,552 | 16 | 13,696 | 11 | 55,984 | -7 |
