8:27 am, September 12, 2022
Consumer car finance new business volumes fell by three per cent year-on-year in July, new data has shown.
The Finance and Leasing Association (FLA) say that the seventh month of the year was ‘subdued’ for the consumer new car finance market.
The sector saw a five per cent fall in new business by value and a 14 per cent decrease by volume to continue a tough start to the year.
In the first seven months of 2022, new business volumes were five per cent lower than in the same period in 2021.
However, it was not all bad news, as the used car finance market reported its ninth consecutive month of double-digit growth.
The sector reported new business up 13 per cent by value, and three per cent by volume in July compared with the same month in 2021.
In the first seven months of 2022, new business volumes in the market were 11 per cent 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 new car finance market remained subdued in July as shortages of supply continued to disrupt the market’s post-pandemic recovery.
‘By contrast, the consumer used car finance market reported its ninth consecutive month of double-digit growth in the value of new business and a return to growth in new business volumes.
‘Despite the challenges posed by the worst inflationary environment since the 1970s, the motor finance industry remains in a strong position to continue to meet demand for the financing of car purchases in the coming months, while providing targeted support to those customers who may need it.
‘As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.’
