The consumer car finance market enjoyed a 43 per cent increase in new business volumes in January versus the same month in 2021, according to latest figures.
Meanwhile, the corresponding value of new business soared by 60 per cent compared with January 2021, the Finance & Leasing Association said today (Mar 11) .
During the 12 months to January 2022, new business volumes rose by 15 per cent versus the same period in 2021.
A total of £132bn of new finance was provided by FLA members to UK businesses and households last year.
New business for the consumer new car finance market increased 52 per cent by value and 47 per cent by volume in January compared with the same month in 2021.
In the 12 months to January 2022, its new business volumes were 12 per cent higher than during the same period in 2021.
The proportion of private new car sales financed by FLA members over the 12 months to January 2022 was 91.2 per cent.
Over in the consumer used car finance market, there was even more cause to celebrate, with new business up 66 per cent by value and 41 per cent by volume in January versus January 2021.
The 12 months to January 2022 saw its new business volumes 17 per cent higher than they were during the same period in 2021.
FLA director of research and chief economist Geraldine Kilkelly said: ‘The strong performance of the consumer car finance market in January in part reflects the closure of showrooms during the third UK lockdown last year and the continued record-high growth in used car prices.
‘Annual new business by value reported by the consumer car finance market was only one per cent lower in January than its pre-pandemic level.
‘The economic outlook in the UK and globally has weakened following the invasion of Ukraine, with consumer price inflation in the UK expected to peak at more than eight per cent in the first half of this year.
‘Nevertheless, we continue to expect further growth in the market during 2022 as demand for finance for electric vehicles and used cars remains strong.’