Home Business NewsBusiness Consumer car finance new business volumes fell by 12% in June 2022

Consumer car finance new business volumes fell by 12% in June 2022

by LLB Reporter
4th Aug 22 10:34 am

New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in June 2022 by 12% compared with the same month in 2021. The corresponding value of new business decreased by 6% over the same period. In the first half of 2022, new business volumes were 6% higher than in the same period in 2021.

The consumer new car finance market reported a fall in new business of 21% by value and 28% by volume in June compared with the same month in 2021. In the first half of 2022, new business volumes in this market were 4% lower than in the same period in 2021.

The consumer used car finance market reported new business up 10% by value, but 3% lower by volume in June compared with the same month in 2021. In the first half of 2022, new business volumes in this market were 12% higher than in the same period in 2021.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:

“In June, the new car finance market reported its largest contraction in new business volumes since February 2021 as vehicle shortages continued to disrupt the market’s recovery.  By contrast, the business used car finance market reported record monthly new business volumes in June, and consumer used car finance new business volumes were only slightly lower than in June 2021.

“Consumer spending is expected to weaken during the second half of 2022 as incomes are squeezed by higher inflation, interest rates, and taxes.  Our Q3 2022 industry outlook survey suggests 56% of motor finance respondents expect growth in new business over the next year, down from 76% in the Q2 2022 survey.

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”

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