12:39 pm, December 15, 2022
Consumer car finance new business volumes grew by four per cent in October, new data has revealed.
Figures released by the Finance & Leasing Association (FLA) suggest that more customers are turning to finance deals in response to the ongoing cost of living crisis.
As well as new business volumes, the corresponding value of new business increased by nine per cent year-on-year in October.
Elsewhere, the consumer new car finance market reported growth in new business of 12 per cent by value and two per cent by volume, compared with the same month in 2021.
In the ten months to October 2022, new business volumes in this market were six per cent lower than in the same period in 2021, the FLA reports.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: ‘In October, the consumer new car finance market reported monthly growth for only the fourth time so far this year, while further growth in the consumer used car finance market reflected the consistently robust performance by this market over the same period.
‘The point-of-sale consumer car finance market is expected to report new business volumes in excess of 2.2m vehicles in 2022 as whole, four per cent higher than in 2021, but 10 per cent lower than in 2019 as supply shortages continue to weigh on the recovery of the new car market.
‘The gradual easing of these shortages should support new business volumes over the next twelve months despite the pressure on real household incomes.
‘As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.’
