New figures released by the Finance & Leasing Association (FLA) show that the consumer car finance market reported new business volumes up in January 2022 by 43% compared with the same month in 2021. The corresponding value of new business increased by 60% over the same period. In the twelve months to January 2022, new business volumes grew by 15% compared with the same period in 2021.
The consumer new car finance market reported new business up 52% by value and 47% by volume in January compared with the same month in 2021. In the twelve months to January 2022, new business volumes in this market were 12% higher than in the same period in 2021. The percentage of private new car sales financed by FLA members in the twelve months to January 2022 was 91.2%.
The consumer used car finance market reported new business up 66% by value and 41% by volume in January compared with the same month in 2021. In the twelve months to January 2022, new business volumes in this market were 17% higher than in the same period in 2021.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The strong performance of the consumer car finance market in January in part reflects the closure of showrooms during the third UK lockdown last year and the continued record-high growth in used car prices. Annual new business by value reported by the consumer car finance market was only 1% lower in January than its pre-pandemic level.
“The economic outlook in the UK and globally has weakened following the invasion of Ukraine, with consumer price inflation in the UK expected to peak at more than 8% in the first half of this year. Nevertheless, we continue to expect further growth in the market during 2022 as demand for finance for electric vehicles and used cars remains strong.”
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business | Jan 2022 | %
change on prev. year |
3 months to Jan 2022 |
% change on prev. year | 12 months to Jan 2022 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 1,307 | 52 | 3,931 | 32 | 17,951 | 19 |
| Number of cars | 53,788 | 47 | 160,538 | 28 | 754,337 | 12 |
| Used cars | ||||||
| Value of advances (£m) | 1,886 | 66 | 4,925 | 45 | 19,970 | 28 |
| Number of cars | 122,230 | 41 | 317,787 | 24 | 1,397,196 | 17 |
| Total cars | ||||||
| Value of advances (£m) | 3,193 | 60 | 8,856 | 39 | 37,921 | 24 |
| Number of cars | 176,018 | 43 | 478,325 | 25 | 2,151,533 | 15 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Jan 2022 | %
change on prev. year |
3
months to Jan 2022 |
% change on prev. year | 12 months to Jan 2022 | % change on prev. year |
| New cars | ||||||
| Number of cars | 20,564 | -5 | 66,951 | -8 | 300,422 | 16 |
| Used cars | ||||||
| Number of cars | 8,368 | 133 | 16,709 | 39 | 53,695 | -4 |
*Article Source http://www.financingyourcar.org.uk
