Finance & Leasing Association11 October 2021
New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported a fall in new business volumes of 10% in August 2021 compared with the same month in 2020. In the eight months to August 2021, new business volumes remained 16% higher than in the same period in 2020.
The consumer new car finance market reported a fall in new business of 13% by value and 18% by volume in August compared with the same month in 2020. In the eight months to August 2021, new business volumes in this market were 16% higher than in the same period in 2020. The percentage of private new car sales financed by FLA members in the twelve months to August 2021 was 93.3%, down from 93.7% in July.
The consumer used car finance market reported a fall in new business volumes of 7% in August compared with the same month in 2020, while the value of new was at a similar level to August 2020. In the eight months to August 2021, new business volumes in this market were also 16% higher than in the same period in 2020.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“Supply issues in the new car market caused by the shortage of semi-conductors continue to hamper the recovery of the automotive industry following the pandemic. New business volumes in the consumer new car finance market fell for a second consecutive month in August and the near-term outlook is likely to be weaker than previously expected.
“By contrast, the consumer used car finance market remains relatively strong, with annual new business by value in August only 1% below its pre-pandemic peak.”
| Table 1: Cars bought on finance by consumers through the point of sale |
||||||
| New business |
Aug 2021 |
% change on prev. year |
3 months to Aug 2021 |
% change on prev. year |
12 months to Aug 2021 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
906 |
-13 |
4,132 |
0 |
17,811 |
12 |
| Number of cars |
40,018 |
-18 |
179,499 |
-4 |
762,683 |
5 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,683 |
0 |
5,158 |
-2 |
18,388 |
13 |
| Number of cars |
119,491 |
-7 |
369,627 |
-8 |
1,366,243 |
8 |
| Total cars |
|
|
|
|
|
|
| Value of advances (£m) |
2,589 |
-5 |
9,290 |
-1 |
36,199 |
13 |
| Number of cars |
159,509 |
-10 |
549,126 |
-6 |
2,128,926 |
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Aug 2021 |
% change on prev. year |
3 months to Aug 2021 |
% change on prev. year |
12 months to Aug 2021 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
20,778 |
2 |
79,538 |
34 |
322,063 |
14 |
| Used cars |
||||||
| Number of cars |
3,049 |
-20 |
10,878 |
-15 |
51,563 |
-6 |
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.
