Finance & Leasing Association13 January 2021
Consumer car finance new business volumes fell by 24% in November 2020
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 24% in November 2020 compared with the same month in 2019. In the eleven months to November 2020, new business volumes in this market were 20% lower than in the same period in 2019.
The consumer new car finance market reported a fall in new business volumes of 27% in November 2020 compared with the same month in 2019. In the eleven months to November 2020, new business volumes in this market fell by 25% compared with the same period a year earlier. The percentage of private new car sales financed by FLA members in the twelve months to November reached 94.5%.
The consumer used car finance market reported a fall in new business volumes of 23% in November 2020 compared with the same month in 2019. In the eleven months to November 2020, new business volumes in this market fell by 17% compared with the same period a year earlier.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The fall in new business volumes in November reflects the closure of many showrooms as further restrictions were introduced to deal with rising cases of Covid-19.
“UK-wide lockdowns during the first quarter of 2021 mean that the near-term outlook remains challenging. The motor finance industry will continue to support households and businesses during that time and as the economy recovers, as evidenced by the £30 billion of new finance provided to them by FLA members since the pandemic began.”
| Table 1: Cars bought on finance by consumers through the point of sale |
||||||
| New business |
Nov 2020 |
% change on prev. year |
3 months to Nov 2020 |
% change on prev. year |
12 months to Nov 2020 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,058 |
-24 |
5,373 |
-2 |
15,789 |
-19 |
| Number of cars |
46,013 |
-27 |
238,061 |
-5 |
713,910 |
-23 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,143 |
-18 |
4,668 |
1 |
16,263 |
-12 |
| Number of cars |
86,100 |
-23 |
354,811 |
-4 |
1,254,621 |
-16 |
| Total cars |
|
|
|
|
|
|
| Value of advances (£m) |
2,201 |
-21 |
10,041 |
-1 |
32,052 |
-15 |
| Number of cars |
132,113 |
-24 |
592,872 |
-5 |
1,968,531 |
-19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Nov 2020 |
% change on prev. year |
3 months to Nov 2020 |
% change on prev. year |
12 months to Nov 2020 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
26,955 |
-7 |
83,676 |
-12 |
272,852 |
-37 |
| Used cars |
||||||
| Number of cars |
4,296 |
22 |
14,947 |
25 |
58,369 |
6 |
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.
