New business volumes in the consumer car finance market fell by 94 per cent in April compared with the same month in 2019, according to latest figures from the Finance & Leasing Association.
Meanwhile, the first four months of 2020 saw a drop of 33 per cent in business volumes.
The consumer new car finance market suffered 97 per cent lower new business volumes in April compared with April 2019, and a 37 per cent decline between January and April inclusive. FLA members financed 94.5 per cent of private new car sales in the year to April 2020.
The consumer used car finance market reported a 92 per cent drop in new business volumes in April against April 2019, and a 30 per cent contraction in the first four months of 2020.
Geraldine Kilkelly, the FLA’s head of research and chief economist, said: ‘While the motor finance market has been the hardest hit of FLA markets, the industry has been innovative in its use of click-and-collect during the lockdown.
‘With the welcome opening of showrooms from the beginning of June, the motor finance market is ready to meet the demand for new finance from households and businesses.
‘The FLA calls on the government and Bank of England to take immediate action to open up financial support schemes to all lenders, including non-banks, so that they can meet this pent-up demand for finance and the huge ongoing requests for forbearance.’
- Want breaking news sent direct to your phone? Join our WhatsApp group. It is broadcast only, no chit chat, and delivers Car Dealer headlines to you as and when they happen. Send us a message here and ask to join, and we’ll send you a link.
- Download the latest digital edition of Car Dealer Magazine Issue 147 for free here.