Consumer car finance market increased by 12% in June

New figures released by the Finance & Leasing Association (FLA) show that the consumer car finance market reported growth in new business volumes of 12% in June 2021 compared with the same month in 2020.  In the first half of 2021, new business volumes were 31% higher than in the same period in 2020.

The consumer new car finance market reported new business volumes up by 25% in June 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.  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 reported new business volumes up by 6% in June compared with the same month in 2020, 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.

Commenting on the figures, 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.”

Table 1: Cars bought on finance by consumers through the point of sale
New business	Jun 2021	% change on prev. year	3 months to Jun 2021	% change on prev. year	12 months to Jun 2021	% change on prev. year
New cars
Value of advances (£m)	1,798	29	4,802	184	18,229	17
Number of cars	77,862	25	203,828	169	785,925	9
Used cars
Value of advances (£m)	1,774	9	5,216	138	18,641	18
Number of cars	129,836	6	387,556	129	1,402,894	12
Total cars
Value of advances (£m)	3,572	18	10,018	158	36,869	18
Number of cars	207,698	12	591,384	142	2,188,819	11
Table 2: Cars bought on finance by businesses
New business	Jun 2021	% change on prev. year	3 months to Jun 2021	% change on prev. year	12 months to Jun 2021	% change on prev. year
New cars
Number of cars	32,181	124	92,781	184	318,299	3
Used cars
Number of cars	3,908	9	12,934	-12	53,713	-1