New figures released by the Finance & Leasing Association (FLA) show that the consumer car finance market reported growth in new business volumes of 12% in June 2021 compared with the same month in 2020. In the first half of 2021, new business volumes were 31% higher than in the same period in 2020.
The consumer new car finance market reported new business volumes up by 25% in June compared with the same month in 2020, while the value of new business grew by 29%. In the first half of 2021, new business volumes in this market were 31% higher than in the same period in 2020. The percentage of private new car sales financed by FLA members in the twelve months to June 2021 was 93.2%.
The consumer used car finance market reported new business volumes up by 6% in June compared with the same month in 2020, while the value of new business grew by 9%. In the first half of 2021, new business volumes in this market were also 31% higher than in the same period in 2020.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The consumer car finance market continued to report solid growth in June, but as expected growth rates are beginning to moderate. The H1 2021 results show that new business levels have recovered strongly as restrictions to deal with the pandemic have been gradually eased. The value of consumer car finance new business in H1 2021 was only 8% lower than in H1 2019.
“Our latest research suggests that the industry has maintained its optimism about the opportunities for growth despite the risks to the economic recovery from further waves of Covid-19. The FLA’s Q3 2021 industry outlook survey shows that 91% of motor finance providers expected new business growth over the next twelve months.â€
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business | Jun 2021 | % change on prev. Year |
3 months to Jun 2021 | % change on prev. Year | 12 months to Jun 2021 |
% change on prev. Year |
| New cars | ||||||
| Value of advances (£m) | 1,798 | 29 | 4,802 | 184 | 18,229 | 17 |
| Number of cars | 77,862 | 25 | 203,828 | 169 | 785,925 | 9 |
| Used cars | ||||||
| Value of advances (£m) | 1,774 | 9 | 5,216 | 138 | 18,641 | 18 |
| Number of cars | 129,836 | 6 | 387,556 | 129 | 1,402,894 | 12 |
| Total cars | ||||||
| Value of advances (£m) | 3,572 | 18 | 10,018 | 158 | 36,869 | 18 |
| Number of cars | 207,698 | 12 | 591,384 | 142 | 2,188,819 | 11 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Jun 2021 | % change on prev. Year | 3 months to Jun 2021 | % change on prev. Year | 12 months to Jun 2021 | % change on prev. Year |
| New cars | ||||||
| Number of cars | 32,181 | 124 | 92,781 | 184 | 318,299 | 3 |
| Used cars | ||||||
| Number of cars | 3,908 | 9 | 12,934 | -12 | 53,713 | -1 |
*Article Source http://www.financingyourcar.org.uk
