Finance & Leasing Association7 May 2020
New figures released today by the Finance & Leasing Association (FLA) show that new business volumes in the consumer car finance market fell in March 2020 by 27% compared with the same month in 2019, and by 13% in Q1 2020 as a whole.
The consumer new car finance market reported new business volumes 29% lower in March 2020 compared with the same month in 2019. The percentage of private new car sales financed by FLA members reached a record-high of 95.6% in the twelve months to March 2020.
The consumer used car finance market reported a fall in new business volumes of 24% in March 2020 compared with the same month in 2019.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The motor finance market has been hit hard by the lockdown in March as the main route to customers through dealerships closed. Our latest research suggests that the consumer car finance market is likely to see the value of new business fall by 29% in 2020 as a whole.
“The FLA urges the Government and Bank of England to open up financial support schemes to all lenders, including non-banks, so that they can meet the significant current demand for forbearance and provide new lending when the economy re-opens. This will also ensure that the motor finance market remains diverse, innovative and competitive after the crisis.”
| Table 1: Cars bought on finance by consumers through the point of sale |
||||||
| New business |
Mar 2020 |
% change on prev. year |
3 months to Mar 2020 |
% change on prev. year |
12 months to Mar 2020 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
2,498 |
-24 |
4,641 |
-17 |
18,711 |
-4 |
| Number of cars |
114,270 |
-29 |
217,684 |
-21 |
875,797 |
-9 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,252 |
-23 |
4,512 |
-5 |
18,129 |
1 |
| Number of cars |
99,786 |
-24 |
357,182 |
-8 |
1,458,273 |
-1 |
| Total cars |
||||||
| Value of advances (£m) |
3,750 |
-24 |
9,153 |
-11 |
36,840 |
-1 |
| Number of cars |
214,056 |
-27 |
574,866 |
-13 |
2,334,070 |
-4 |
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Mar 2020 |
% change on prev. year |
3 months to Mar 2020 |
% change on prev. year |
12 months to Mar 2020 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
31,043 |
-38 |
80,346 |
-25 |
404,002 |
-8 |
| Used cars |
||||||
| Number of cars |
4,586 |
-25 |
16,514 |
-6 |
53,938 |
-2 |
Note to editors:
- Consumer motor finance reported in these figures refers to finance obtained through the point of sale.
- In 2019, FLA members provided £140 billion of new finance to UK businesses and households. £105 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2019. £48 billion of it supported the purchase of new and used cars, including over 91% of private new car registrations.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
