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Consumer car finance new business volumes up by 43% in January 2022

Consumer car finance new business volumes up by 43% in January 2022

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

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