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Consumer car finance market falls by 78% in May 2020

Consumer car finance market falls by 78% in May 2020
New figures released today by the Finance & Leasing Association (FLA) show that new business volumes in the consumer car finance market fell in May 2020 by 78% compared with the same month in 2019, and by 41% in the five months to May 2020.

The consumer new car finance market reported a fall in new business volumes of 86% in May 2020 compared with the same month in 2019, and a fall of 46% in the five months to May 2020. The percentage of private new car sales financed by FLA members was 94.3% in the twelve months to May 2020.

The consumer used car finance market reported new business volumes 73% lower in May 2020 than in the same month in 2019, and 38% lower in the first five months of 2020.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“The FLA’s latest figures suggest that while the motor finance industry continued to be severely impacted by the lockdown restrictions in May, new business volumes improved on the record low in April as the industry embraced the use of click and collect to meet customer demand.

“As the industry gears up to meet an extended period of forbearance and a strong pick-up in demand for new credit, the Government and Bank of England need to ensure that all lenders, including non-banks, have access to financial support schemes. This is vital if households and businesses are to be served by a competitive and vibrant motor finance industry post-crisis.”

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

New business

May 2020

% change
on prev. year

3 months
to May 2020

% change
on prev. year

12 months
to May 2020

% change
on prev. year

New cars

 

 

 

 

 

 

Value of advances (£m)

241

-85

2,796

-57

15,800

-19

Number of cars

10,776

-86

127,611

-59

737,780

-22

Used cars

 

 

 

 

 

 

Value of advances (£m)

439

-72

1,820

-62

15,502

-14

Number of cars

35,066

-73

145,730

-63

1,241,432

-15

Total cars

 

 

 

 

 

 

Value of advances (£m)

681

-78

4,616

-59

31,302

-16

Number of cars

45,842

-78

273,341

-61

1,979,212

-18

  

Table 2: Cars bought on finance by businesses

New business

May 2020

% change
on prev. year

3 months
to May 2020

% change
on prev. year

12 months
to May 2020

% change
on prev. year

New cars

 

 

 

 

 

 

Number of cars

5,796

-86

49,384

-65

334,066

-24

Used cars

 

 

 

 

 

 

Number of cars

2,535

-39

15,771

12

57,105

2

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