Consumer car finance new business fell by 27% in February

New figures released by the Finance & Leasing Association (FLA) have shown that the consumer car finance market reported a fall in new business volumes of 27% in February 2021, compared with the same month in 2020.

The consumer new car finance market reported a fall in new business volumes of 34% in February compared with the same month in 2020. The percentage of private new car sales financed by FLA members in the twelve months to February 2021 was 92.8%.

The consumer used car finance market reported new business volumes 25% lower in February than in the same month in 2020.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The UK lockdown restrictions over the winter months contributed to a fall in consumer car finance new business volumes of just over a quarter.”

“As car showrooms re-open and consumer confidence recovers, we expect a strong rebound in demand. The value of annual new business in the consumer car finance market is expected to reach its pre-pandemic level this year.”

Cars bought on finance by consumers through the point of sale

New business	Feb 2021	% change on prev. year	3 months to Feb 2021	% change on prev. year	12 months to Feb 2021	% change on prev. year
New cars
Value of advances (£m)	659	-27	2,613	-24	14,869	-24
Number of cars	29,252	-34	111,200	-30	659,809	-28
Used cars
Value of advances (£m)	1,243	-23	3,510	-21	15,228	-18
Number of cars	93,873	-25	265,443	-24	1,161,932	-22
Total cars
Value of advances (£m)	1,902	-24	6,123	-23	30,097	-21
Number of cars	123,125	-27	376,643	-26	1,821,741	-25
Table 2: Cars bought on finance by businesses
New business	Feb 2021	% change on prev. year	3 months to Feb 2021	% change on prev. year	12 months to Feb 2021	% change on prev. year
New cars
Number of cars	16,036	-24	62,657	-21	253,688	-40
Used cars
Number of cars	3,396	-5	11,065	-24	55,477	1