Skip to main content

Consumer car finance market up by 327% in May

Consumer car finance market up by 327% in May

New figures released by the Finance & Leasing Association (FLA) show that the consumer car finance market reported growth in new business volumes of 327% in May 2021 compared with the same month in 2020. In the first five months of 2021, new business volumes were 37% higher than in the same period in 2020.

The consumer new car finance market reported new business volumes up by 514% in May compared with the same month in 2020, while the value of new business grew by 555%. In the first five months of 2021, new business volumes in this market were 32% higher than in the same period in 2020. The percentage of private new car sales financed by FLA members in the twelve months to May 2021 was 92.9%. 

The consumer used car finance market reported new business volumes up by 270% in May compared with the same month in 2020, while the value of new business grew by 293%. In the first five months of 2021, new business volumes in this market were 39% 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 recovery in the consumer car finance market continued in May as consumers have become more optimistic of a strong economic recovery. The significant growth rates reported in April and May reflect the impact on new business levels of restrictions to deal with Covid-19 during the first lockdown and we expect these to moderate in the coming months. 

“Risks to the recovery remain from ongoing restrictions that may be needed to deal with the pandemic, the impact on confidence and unemployment once Government support schemes end, and increasing inflationary pressures. Nevertheless, we currently expect the industry to return to more normal new business levels during the second half of 2021.”

Table 1: Cars bought on finance by consumers through the point of sale

 

New business

May 2021

% change
on prev.
Year

3 months
to May
2021

% change
on prev.
Year

12 months
to May
2021

% change
on prev.
Year

New cars

 

 

 

 

 

 

Value of
advances (£m)

1,578

555

5,690

104

17,802

13

Number of cars

65,635

514

235,609

86

769,339

5

Used cars

 

 

 

 

 

 

Value of
advances (£m)

1,747

293

5,105

179

18,490

19

Number of cars

130,899

270

380,972

161

1,396,044

12

Total cars

 

 

 

 

 

 

Value of
advances (£m)

3,325

385

10,795

134

36,292

16

Number of cars

196,534

327

616,581

126

2,165,383

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2: Cars bought on finance by businesses

New business

May 2021

% change
on prev.
Year

3 months
to May
2021

% change
on prev.
Year

12 months
to May
2021

% change
on prev.
Year

New cars

 

 

 

 

 

 

Number of cars

26,882

363

93,140

89

298,001

-11

Used cars

           

Number of cars

3,632

43

13,675

-14

53,368

-6

*Article Source http://www.financingyourcar.org.uk

Hi, I am Alphie. How can I help you?