Consumer car finance new business volumes fell by 27% in February 2021

9 April 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 27% in February 2021, compared with the same month in 2020.

The consumer new car finance market reported a fall in new business volumes of 34% in February compared with the same month in 2020. The percentage of private new car sales financed by FLA members in the twelve months to February 2021 was 92.8%.

The consumer used car finance market reported new business volumes 25% lower in February than in the same month in 2020.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:

“The UK lockdown restrictions over the winter months contributed to a fall in consumer car finance new business volumes of just over a quarter.

“As car showrooms re-open and consumer confidence recovers, we expect a strong rebound in demand. The value of annual new business in the consumer car finance market is expected to reach its pre-pandemic level this year.”

Table 1: Cars bought on finance by consumers through the point of sale

New business

Feb 2021

% change on

prev. year

3 months to

Feb 2021

% change on

prev. year

12 months to

Feb 2021

% change on

prev. year

New cars

 

 

 

 

 

 

Value of advances (£m)

659

-27

2,613

-24

14,869

-24

Number of cars

29,252

-34

111,200

-30

659,809

-28

Used cars

 

 

 

 

 

 

Value of advances (£m)

1,243

-23

3,510

-21

15,228

-18

Number of cars

93,873

-25

265,443

-24

1,161,932

-22

Total cars

 

 

 

 

 

 

Value of advances (£m)

1,902

-24

6,123

-23

30,097

-21

Number of cars

123,125

-27

376,643

-26

1,821,741

-25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2: Cars bought on finance by businesses

New business

Feb 2021

% change on prev. year

3 months to Feb 2021

% change on prev. year

12 months to Feb 2021

% change on prev. year

New cars

 

 

 

 

 

 

Number of cars

16,036

-24

62,657

-21

253,688

-40

Used cars

           

Number of cars

3,396

-5

11,065

-24

55,477

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note to editors:

  1. Consumer motor finance reported in these figures refers to finance obtained through the point of sale.
  2. 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.
  3. For media enquiries, please contact the FLA press office on 020 7420 9656.

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