Consumer car finance new business volumes up by 7%

New figures released by the Finance & Leasing Association (FLA) show that the consumer car finance market reported growth in new business volumes of 7% in September 2020 compared with the same month in 2019.  In the first nine months of 2020, new business volumes in this market were 22% lower than in the same period in 2019.

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.

Commenting on the figures, 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.”

“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