New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported growth in new business volumes of 327% in May 2021 compared with the same month in 2020. In the first five months of 2021, new business volumes were 37% higher than in the same period in 2020.
The consumer new car finance market reported new business volumes up by 514% in May compared with the same month in 2020, while the value of new business grew by 555%. In the first five months of 2021, new business volumes in this market were 32% higher than in the same period in 2020. The percentage of private new car sales financed by FLA members in the twelve months to May 2021 was 92.9%.
The consumer used car finance market reported new business volumes up by 270% in May compared with the same month in 2020, while the value of new business grew by 293%. In the first five months of 2021, new business volumes in this market were 39% higher than in the same period in 2020.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The recovery in the consumer car finance market continued in May as consumers have become more optimistic of a strong economic recovery. The significant growth rates reported in April and May reflect the impact on new business levels of restrictions to deal with Covid-19 during the first lockdown and we expect these to moderate in the coming months.
“Risks to the recovery remain from ongoing restrictions that may be needed to deal with the pandemic, the impact on confidence and unemployment once Government support schemes end, and increasing inflationary pressures. Nevertheless, we currently expect the industry to return to more normal new business levels during the second half of 2021.”
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