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Consumer car finance market business volumes grew by 12 per cent in June, latest figures show

  • New business volumes over first half of 2021 were 31 per cent above 2020’s figure
  • New car finance market volumes up by a quarter in June
  • Used car finance market volumes rose by six per cent during same month

Time 2 months ago

New figures out today (Aug 2) show the consumer car finance market enjoyed 12 per cent growth in new business volumes in June 2021 versus the same month last year.

The Finance & Leasing Association (FLA) also said that over the first six months of 2021, new business volumes were 31 per cent above what they were in 2020.

The consumer new car finance market saw new business volumes up by 25 per cent in June compared with the same month in 2020, while the value of new business increased by 29 per cent.

During the first half of 2021, new business volumes in this market were 31 per cent higher than in 2020.

FLA members financed 93.2 per cent of private new car sales in the year to June 2021.

Meanwhile, the consumer used car finance market saw new business volumes increase by six per cent in June again June 2020, while the value of new business grew by nine per cent.

As with the new car market, the second-hand car sector also saw new business volumes increase by 31 per cent in the first half of 2021 versus the same period in 2020.

Geraldine Kilkelly, director of research and chief economist at the FLA, said: ‘The consumer car finance market continued to report solid growth in June, but as expected growth rates are beginning to moderate.

‘The H1 2021 results show that new business levels have recovered strongly as restrictions to deal with the pandemic have been gradually eased.

‘The value of consumer car finance new business in H1 2021 was only eight per cent lower than in H1 2019’.

She added: ‘Our latest research suggests that the industry has maintained its optimism about the opportunities for growth despite the risks to the economic recovery from further waves of Covid-19.

‘The FLA’s Q3 2021 industry outlook survey shows that 91 per cent of motor finance providers expected new business growth over the next 12 months.’

John Bowman's avatar

John has been with Car Dealer since 2013 after spending 25 years in the newspaper industry as a reporter then a sub-editor/assistant chief sub-editor on regional and national titles. John is chief sub-editor in the editorial department, working on Car Dealer, as well as handling social media.

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