LATEST figures released by the Finance and Leasing Association (FLA) show that the consumer car finance market reported a fall in new business volumes of 3% in October 2020 compared with the same month in 2019.
In the ten months to October 2020, new business volumes in this market were 20% lower than in the same period in 2019.
For new car finance, business volumes were down 4% during the month compared with the same month in 2019, and down 25% year-on-year. The percentage of private new car sales financed by FLA members in the twelve months to October 2020 was 94.1%, up from 91.7% in the same period in 2019. The consumer used car finance market reported a fall in new business volumes of 2% in October and down 17% in the ten months to October.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “The introduction of new restrictions during October to curb the growth in coronavirus cases has led to a softening in demand for consumer car finance. The fall in the used car finance market in October was the first since May of this year.
“The economic outlook has improved following the promised rollout of a vaccine before Christmas. Based on this more positive outlook, our latest research suggests that consumer car finance new business by value is likely to grow by 18% in 2021, following a contraction of 20% in 2020 as whole.”
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Cars bought on finance by consumers through the point of sale | ||||||
New business |
Oct 2020 |
% change on prev. year |
3 months to Oct 2020 |
% change on prev. year |
12 months to Oct 2020 |
% change on prev. year |
New cars | ||||||
Value of advances (£m) |
1,416 |
0 |
5,358 |
6 |
16,128 |
-17 |
Number of cars |
63,647 |
-4 |
241,586 |
1 |
730,540 |
-22 |
Used cars |
|
|
|
|
|
|
Value of advances (£m) |
1,640 |
3 |
5,221 |
9 |
16,519 |
-10 |
Number of cars |
125,965 |
-2 |
398,756 |
4 |
1,280,399 |
-14 |
Total cars | ||||||
Value of advances (£m) |
3,056 |
2 |
10,579 |
8 |
32,647 |
-14 |
Number of cars |
189,612 |
-3 |
640,342 |
3 |
2,010,939 |
-17 |
Cars bought on finance by businesses | ||||||
New business |
Oct 2020 |
% change on prev. year |
3 months to Oct 2020 |
% change on prev. year |
12 months to Oct 2020 |
% change on prev. year |
New cars | ||||||
Number of cars |
27,851 |
-24 |
77,089 |
-16 |
274,789 |
-37 |
Used cars | ||||||
Number of cars |
5,450 |
21 |
14,474 |
10 |
57,581 |
3 |
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