New figures released by the Finance & Leasing Association (FLA) show that the consumer car finance market reported a fall in new business volumes of 27% in February 2021, compared with the same month in 2020.
The consumer new car finance market reported a fall in new business volumes of 34% in February compared with the same month in 2020. The percentage of private new car sales financed by FLA members in the twelve months to February 2021 was 92.8%.
The consumer used car finance market reported new business volumes 25% lower in February than in the same month in 2020.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The UK lockdown restrictions over the winter months contributed to a fall in consumer car finance new business volumes of just over a quarter.
“As car showrooms re-open and consumer confidence recovers, we expect a strong rebound in demand. The value of annual new business in the consumer car finance market is expected to reach its pre-pandemic level this year.â€
Table 1: Cars bought on finance by consumers through the point of sale | ||||||
New business | Feb 2021 |
% change on prev. Year |
3 months to Feb 2021 |
% change on prev. Year |
12 months to Feb 2021 |
% change on prev. Year |
New cars | ||||||
Value of advances (£m) | 659 | -27 | 2,613 | -24 | 14,869 | -24 |
Number of cars | 29,252 | -34 | 111,200 | -30 | 659,809 | -28 |
Used cars | ||||||
Value of advances (£m) | 1,243 | -23 | 3,510 | -21 | 15,228 | -18 |
Number of cars | 93,873 | -25 | 265,443 | -24 | 1,161,932 | -22 |
Total cars | ||||||
Value of advances (£m) | 1,902 | -24 | 6,123 | -23 | 30,097 | -21 |
Number of cars | 123,125 | -27 | 376,643 | -26 | 1,821,741 | -25 |
Table 2: Cars bought on finance by businesses | ||||||
New business | Feb 2021 | % change on prev. Year |
3 months to Feb 2021 |
% change on prev. Year |
12 months to Feb 2021 |
% change on prev. Year |
New cars | ||||||
Number of cars | 16,036 | -24 | 62,657 | -21 | 253,688 | -40 |
Used cars | ||||||
Number of cars | 3,396 | -5 | 11,065 | -24 | 55,477 | 1 |
*Article Source http://www.financingyourcar.org.uk