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Consumer car finance new business volumes fell by 1% in April 2022

Consumer car finance new business volumes fell by 1% in April 2022

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in April 2022 by 1% compared with the same month in 2021. The corresponding value of new business grew by 12% over the same period. In the first four months of 2022, new business volumes were 15% higher than in the same period in 2021.

The consumer new car finance market reported new business up 4% by value and 1% by volume in April compared with the same month in 2021. In the first four months of 2022, new business volumes in this market were 5% higher than in the same period in 2021.

The consumer used car finance market reported new business up 17% by value, but 2% lower by volume in April compared with the same month in 2021. In the first four months of 2022, new business volumes in this market were 20% 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 consumer car finance market continues to be impacted by the global disruption to the supply of vehicles. The market reported further double-digit growth in the value of new business reflecting upward pressure on car prices, particularly in the used car market.

“Consumer spending is expected to slow as pressure builds on household incomes from higher inflation, interest rates, and taxes.  Our latest research suggests that consumer car finance new business by value will grow by 11% in the first half of 2022 and by 5% in the second half of the year.

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”

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

New business

Apr 2022

% change on prev. year

3 months to Apr 2022

% change on prev. year

12 months to Apr 2022

% change on prev. year

New cars

 

 

 

 

 

 

Value of advances (£m)

1,449

4

4,820

1

18,002

9

Number of cars

58,766

1

194,079

-2

749,875

5

Used cars

 

 

 

 

 

 

Value of advances (£m)

2,048

17

6,318

34

22,253

27

Number of cars

128,176

-2

402,056

13

1,511,004

14

Total cars

 

 

 

 

 

 

Value of advances (£m)

3,498

12

11,138

17

40,255

19

Number of cars

186,942

-1

596,135

7

2,260,879

11

Table 2: Cars bought on finance by businesses

New business

Apr 2022

% change on prev. year

3 months to Apr 2022

% change on prev. year

12 months to Apr 2022

% change on prev. year

New cars

 

 

 

 

 

 

Number of cars

23,660

-20

68,514

-12

291,196

7

Used cars

 

 

 

 

 

 

Number of cars

5,303

-2

16,389

22

56,541

8

 

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

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