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Consumer car finance new business volumes fell by 35% in January 2021

Consumer car finance new business volumes fell by 35% in January 2021

New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported a fall in new business volumes of 35% in January 2021, compared with the same month in 2020. 

The consumer new car finance market reported a fall in new business volumes of 38% in January compared with the same month in 2020. The percentage of private new car sales financed by FLA members in the twelve months to January 2021 held steady at 93.2%. 

The consumer used car finance market reported a similar fall in in January as new business volumes decreased by 34% compared with the same month in 2020.

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

“The impact of the latest UK-wide lockdown restrictions has not been as severe as the first lockdown introduced last March with many dealerships able to offer click and collect or deliver services. The value of new business in the consumer car finance market is expected to fall by 16% in Q1 2021 as a whole.

“Our latest research suggests that once showrooms re-open there will be a strong recovery in the consumer car finance market, with the value of new business expected to grow by 17% in 2021, and a further 12% growth forecast for 2022.” 

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

New business

Jan 2021

% change on prev. Year

3 months to Jan 2021

% change on prev. Year

12 months to Jan 2021

% change on prev. Year

New cars

Value of advances (£m)

850

-31

2,995

-24

15,116

-23

Number of cars

36,134

-38

127,190

-28

674,728

-27

Used cars

Value of advances (£m)

1,142

-31

3,396

-20

15,597

-16

Number of cars

87,557

-34

256,667

-23

1,193,710

-20

Total cars

Value of advances (£m)

1,992

-31

6,391

-22

30,713

-19

Number of cars

123,691

-35

383,857

-25

1,868,438

-23

 

Table 2: Cars bought on finance by businesses

New business

Jan 2021

% change on prev. Year

3 months to Jan 2021

% change on prev. Year

12 months to Jan 2021

% change on prev. Year

New cars

Number of cars

21,542

-19

72,616

-16

258,883

-39

Used cars

Number of cars

3,530

-56

11,951

-18

55,654

-2

                   

 

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

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