7:57 am, May 14, 2022
New business volumes in the consumer car finance market grew by two per cent year on year in March, latest data has revealed.
Figures from the Finance & Leasing Association showed that the third month of the year also saw the value of new business go up by eight per cent.
The numbers reveal a slowdown in growth towards the end of the first quarter, with Q1 as a whole experiencing a rise of 18 per cent in new business volumes, compared with the same time last year.
The consumer new car finance market reported a fall in new business of six per cent by value and eight per cent by volume in March compared with the same month in 2021.
In Q1 2022 overall, new business volumes in this market were six per cent higher than in the same quarter in 2021.
The consumer used car finance market reported new business up 31 per cent by value and 10 per cent by volume in March compared with the same month in 2021.
In Q1 2022 overall, new business volumes in this market were 26 per cent higher than in the same quarter in 2021.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: ‘The slowdown in growth reported by the consumer car finance market in March was primarily driven by the adverse impact of supply shortages in the new car market.
‘The consumer used car finance market remained buoyant, reaching new heights in March as monthly new business surpassed £2bn for the first time.
‘The UK economic outlook has weakened significantly because of the squeeze on household incomes and business profit margins from higher inflation.
‘Pressure on household incomes this year and the ongoing vehicle supply issues mean the consumer car finance market is likely to record single-digit growth in the value of new business in 2022 overall.’
