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LATEST from 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.

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