Finance & Leasing Association9 December 2021
New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported a fall in new business of only 1% by value, but 11% by volume in October 2021 compared with the same month in 2020. In the ten months to October 2021, new business volumes were 7% higher than in the same period in 2020.
The consumer new car finance market reported a fall in new business of 8% by value and 13% by volume in October compared with the same month in 2020. In the ten months to October 2021, new business volumes in this market were 4% higher than in the same period in 2020. The percentage of private new car sales financed by FLA members in the twelve months to October 2021 was 93.0%, a similar level to the same period in 2020.
The consumer used car finance market reported new business up 4% by value, but 10% lower by volume in October compared with the same month in 2020. In the ten months to October 2021, new business volumes in this market were 9% 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 latest consumer car finance market data reflects the ongoing supply shortages of new and used cars. The average advance to consumers for used car purchases reached £15,000 in October as high demand combined with supply pressures saw used car prices grow by almost 23% during the same period.
“The car finance market was quick to recover as the economy opened up, with the value of annual new business in the consumer used car finance market in October only 1% below the pre-pandemic peak. However, the pace of recovery has been hampered by supply shortages which are likely to persist into 2022 as countries across the world contend with new waves and variants of Covid-19.”
| Table 1: Cars bought on finance by consumers through the point of sale |
||||||
| New business |
Oct 2021 |
% change on prev. year |
3 months to Oct 2021 |
% change on prev. year |
12 months to Oct 2021 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,277 |
-8 |
4,362 |
-18 |
16,985 |
6 |
| Number of cars |
53,777 |
-13 |
187,412 |
-21 |
720,576 |
0 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,688 |
4 |
5,168 |
0 |
18,386 |
12 |
| Number of cars |
112,290 |
-10 |
352,160 |
-11 |
1,333,166 |
5 |
| Total cars |
|
|
|
|
|
|
| Value of advances (£m) |
2,965 |
-1 |
9,530 |
-9 |
35,370 |
9 |
| Number of cars |
166,067 |
-11 |
539,572 |
-15 |
2,053,742 |
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Oct 2021 |
% change on prev. year |
3 months to Oct 2021 |
% change on prev. year |
12 months to Oct 2021 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
23,385 |
-16 |
72,730 |
-6 |
306,693 |
12 |
| Used cars |
||||||
| Number of cars |
4,978 |
-22 |
12,154 |
-21 |
49,093 |
-16 |
Note to editors:
- Consumer motor finance reported in these figures refers to finance obtained through the point of sale.
- In 2020, FLA members provided £113 billion of new finance to UK businesses and households. £86 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2020. £39 billion of it supported the purchase of new and used cars, including over 93% of private new car registrations.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
