Consumer Car Finance New Business Soars, in November According to Latest Figures

Purley Automotive News - January 2022

New business volumes in the consumer car finance market rose by 33 per cent in November 2021 versus the same month in 2020, according to latest figures.

The Finance & Leasing Association also said today (Jan 14) that in the 11 months to November 2021, new business volumes were nine per cent higher year on year.

The consumer new car finance market enjoyed a 37 per cent increase in new business by value and 32 per cent by volume in November compared with November 2020.

Over the 11 months to November 2021, new business volumes in this market were six per cent higher than in the same period in 2020.

The consumer used car finance market, meanwhile, reported new business up 55 per cent by value and 33 per cent by volume in November compared with the same month in 2020.

In the 11 months to November 2021, new business volumes in this market were 11 per cent higher than in the same period in 2020.

FLA director of research and chief economist Geraldine Kilkelly said: ‘The strong growth reported by the consumer car finance market in November reflects low new business volumes reported a year earlier as the UK entered another lockdown to deal with rising cases of Covid-19.

‘The market’s recovery continues to be disrupted by supply shortages and the increasing squeeze on household disposable incomes from higher inflation and interest rates.

‘New business volumes in the consumer car finance market are likely to be just over 2.1 million cars in 2021 as a whole – 12 per cent lower than at the onset of the pandemic in February 2020.

Article courtesy of www.cardealermagazine.co.uk published 14/1/2022