10:38 am, July 7, 2022
Vehicle shortages are continuing to have an impact on the new car finance market, the sector’s trade body said today.
Figures released today by the Finance & Leasing Association show the consumer new car finance market suffered a fall in new business of seven per cent by value and 11 per cent by volume in May versus the same month in 2021.
Consumer car finance new business volumes as a whole fell by four per cent versus the same month in 2021.
The corresponding value of new business grew by six per cent over the same period.
Meanwhile, in the five months to May 2022, new business volumes were 10 per cent higher than in the same period in 2021.
The consumer used car finance market reported new business up 17 per cent by value, but one per cent lower by volume in May versus the same month in 2021.
In the five months to May 2022, new business volumes in this market were 15 per cent higher than in the same period in 2021.
New business volumes in the consumer new car finance market were two per cent higher over the five months than in the same period in 2021.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: ‘May saw a continuation of recent trends in the consumer car finance market, with vehicle shortages weighing on new business volumes in the new car finance market, and higher new and used car prices leading to further growth in average advances.
‘Pressures on household incomes from higher inflation, interest rates and taxes are expected to subdue consumer spending in the coming months.
‘Growth in the value of consumer car finance new business is expected to be relatively modest at four per cent in Q3 2022 and five per cent in Q4 2022 compared with the same quarter in 2021.’
