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Consumer car finance market boost in April as showrooms re-open

Consumer car finance market boost in April as showrooms re-open

New figures released by the Finance & Leasing Association (FLA) show that the consumer car finance market reported growth in new business volumes of 1276% in April 2021 compared with the same month in 2020. In the first four months of 2021, new business volumes were 13% higher than in the same period in 2020.

The consumer new car finance market reported new business volumes up by 2195% in April compared with the same month in 2020, while the value of new business grew by 2370%. In the first four months of 2021, new business volumes in this market were 8% higher than in the same period in 2020. The percentage of private new car sales financed by FLA members in the twelve months to April 2021 held relatively steady at 93.0%. 

The consumer used car finance market reported new business volumes up by 1061% in April compared with the same month in 2020, while the value of new business grew by 1204%. In the first four months of 2021, new business volumes in this market were 17% 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 received a boost in April as showrooms re-opened, with the significant growth rate also reflecting the all-time low level of new business recorded in April 2020 at the start of the first lockdown.

“Pent-up demand and an improvement in consumer confidence are expected to contribute to a strong recovery during the second half of 2021, with our latest research suggesting that consumer car finance new business by value will grow by 19% in 2021 as a whole, and by a further 13% in 2022.”

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

New business

Apr 2021

% change
on prev. Year

3 months
to Apr 2021

% change
on prev. Year

12 months
to Apr 2021

% change
on prev. Year

New cars

           

Value of advances (£m)

1,382

2370

4,758

38

16,444

-4

Number of cars

58,195

2195

198,583

24

713,424

-11

Used cars

           

Value of advances (£m)

1,680

1204

4,580

53

17,172

3

Number of cars

125,821

1061

342,599

45

1,299,494

-3

Total cars

           

Value of advances (£m)

3,061

1557

9,338

45

33,615

-1

Number of cars

184,016

1276

541,182

37

2,012,918

-6

Table 2: Cars bought on finance by businesses

New business

Apr 2021

% change
on prev. Year

3 months
to Apr 2021

% change
on prev. Year

12 months
to Apr 2021

% change
on prev. Year

New cars

           

Number of cars

31,032

147

82,280

27

276,691

-25

Used cars

           

Number of cars

5,355

-38

13,402

-21

52,246

-11

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

 

 

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