New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported new business volumes up in February 2022 by 24% compared with the same month in 2021. The corresponding value of new business grew by 39% over the same period. In the first two months of 2022, new business volumes were 34% higher than in the same period in 2021.
The consumer new car finance market reported new business up 15% by value and 9% by volume in February compared with the same month in 2021. In the first two months of 2022, new business volumes in this market were 30% higher than in the same period in 2021. The percentage of private new car sales financed by FLA members in the twelve months to February 2022 was 90.8%.
The consumer used car finance market reported new business up 52% by value and 29% by volume in February compared with the same month in 2021. In the first two months of 2022, new business volumes in this market were 35% higher than in the same period in 2021.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The consumer car finance market’s performance in February reflected pent-up consumer demand and the distorting effects from both the closure of showrooms last year during the third UK lockdown and record-high growth in used car prices.
“The near-term economic outlook remains difficult as consumers and businesses face higher prices and increased costs across the board. The impacts of the squeeze on household disposable incomes and ongoing vehicle and component supply issues are reflected in our latest research which suggests that consumer car finance new business by value will grow by 7% in 2022, revised down from a growth forecast of 11% made in the final quarter of 2021.
“As always, any customer worried about meeting payments should speak to their lender as soon as possible to find a solution.”
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