New business in the consumer car finance market grew by one per cent by volume and eight per cent by value in August against the same month last year.
However, new business volumes in that market for the year to the end of August fell by 26 per cent compared with the first eight months of 2019.
Latest figures released today (Oct 9) by the Finance & Leasing Association (FLA) showed that the consumer used car finance market had a growth in new business of two per cent by volume and 10 per cent by value in August 2020 versus August 2019.
Meanwhile, in the eight months to August 2020, new business volumes in the used car finance market dropped by 22 per cent against the same period in 2019.
New business volumes in the consumer new car finance market were one per cent lower in August than in 2019, while the value of new business went up by five per cent.
But new business volumes in the consumer new car finance market during the first eight months of 2020 market fell by 33 per cent versus a year earlier.
The percentage of private new car sales financed by FLA members in the year to August 2020 was steady at 93.5 per cent.
Geraldine Kilkelly, FLA head of research and chief economist, said: ‘It is encouraging to see further growth in the consumer car finance market, which shows the underlying strength of the market despite the disruption caused by the Covid-19 crisis.
‘However, the near-term outlook for demand and employment is highly uncertain as new restrictions are imposed to deal with the ongoing crisis.
‘It is more vital than ever that the government and Bank of England support all lenders, including non-banks, by removing obstacles that still exist around access to funding.
‘This will ensure that the motor finance industry is able to meet the ongoing demand for forbearance and new credit.’