NEW figures released by the FLA show that consumer car finance new business volumes grew in August 2022 by 5% compared with the same month in 2021.
The corresponding value of new business increased by 13% over the same period. In the first eight months of 2022, new business volumes remained 5% higher than in the same period in 2021.
Michael Davidson, Chief Revenue Officer at digital lending marketplace Freedom Finance, said that growth in the auto finance market and the rise of embedded finance was playing a “major role” in supporting motorists.
“Auto finance has a major role to play in meeting the demand from people looking to buy new and used vehicles by spreading the cost of payments in a flexible, tailored way. The market has seen significant growth and innovation to broaden the range of products that are available and there are now more bespoke options that can be arranged to suit a customer’s personal circumstances.
“For consumers, shopping around remains a vital step in getting the right deal for them at a competitive rate rather than simply accepting their first offer. Technologies are improving and digital marketplaces can now quickly offer a range of products that customers will definitely be eligible for via a single application that won’t damage their credit score.
“Many successful car dealerships have also put in place embedded finance partners that can meet their customers’ demands for quick, simple access to a range of different car finance options as well as other financial services so that their customers can get the best deal at any stage of the purchase journey.”
