New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported a fall in new business volumes of 10% in August 2021 compared with the same month in 2020. In the eight months to August 2021, new business volumes remained 16% higher than in the same period in 2020.
The consumer new car finance market reported a fall in new business of 13% by value and 18% by volume in August compared with the same month in 2020. In the eight months to August 2021, new business volumes in this market were 16% higher than in the same period in 2020. The percentage of private new car sales financed by FLA members in the twelve months to August 2021 was 93.3%, down from 93.7% in July.
The consumer used car finance market reported a fall in new business volumes of 7% in August compared with the same month in 2020, while the value of new was at a similar level to August 2020. In the eight months to August 2021, new business volumes in this market were also 16% higher than in the same period in 2020.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“Supply issues in the new car market caused by the shortage of semi-conductors continue to hamper the recovery of the automotive industry following the pandemic. New business volumes in the consumer new car finance market fell for a second consecutive month in August and the near-term outlook is likely to be weaker than previously expected.
“By contrast, the consumer used car finance market remains relatively strong, with annual new business by value in August only 1% below its pre-pandemic peak.â€
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business | Aug 2021 | % change on prev. Year |
3 months to Aug 2021 |
% change on prev. Year |
12 months to Aug 2021 |
% change on prev. Year |
| New cars | ||||||
| Value of advances (£m) | 906 | -13 | 4,132 | 0 | 17,811 | 12 |
| Number of cars | 40,018 | -18 | 179,499 | -4 | 762,683 | 5 |
| Used cars | ||||||
| Value of advances (£m) | 1,683 | 0 | 5,158 | -2 | 18,388 | 13 |
| Number of cars | 119,491 | -7 | 369,627 | -8 | 1,366,243 | 8 |
| Total cars | ||||||
| Value of advances (£m) | 2,589 | -5 | 9,290 | -1 | 36,199 | 13 |
| Number of cars | 159,509 | -10 | 549,126 | -6 | 2,128,926 | 7 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Aug 2021 | % change on prev. Year | 3 months to Aug 2021 | % change on prev. Year | 12 months to Aug 2021 | % change on prev. Year |
| New cars | ||||||
| Number of cars | 20,778 | 2 | 79,538 | 34 | 322,063 | 14 |
| Used cars | ||||||
| Number of cars | 3,049 | -20 | 10,878 | -15 | 51,563 | -6 |
*Article Source http://www.financingyourcar.org.uk
