Finance & Leasing Association15 March 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 35% in January 2021, compared with the same month in 2020.
The consumer new car finance market reported a fall in new business volumes of 38% in January compared with the same month in 2020. The percentage of private new car sales financed by FLA members in the twelve months to January 2021 held steady at 93.2%.
The consumer used car finance market reported a similar fall in in January as new business volumes decreased by 34% compared with the same month in 2020.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The impact of the latest UK-wide lockdown restrictions has not been as severe as the first lockdown introduced last March with many dealerships able to offer click and collect or deliver services. The value of new business in the consumer car finance market is expected to fall by 16% in Q1 2021 as a whole.
“Our latest research suggests that once showrooms re-open there will be a strong recovery in the consumer car finance market, with the value of new business expected to grow by 17% in 2021, and a further 12% growth forecast for 2022.”
| Table 1: Cars bought on finance by consumers through the point of sale |
||||||
| New business |
Jan 2021 |
% change on prev. year |
3 months to Jan 2021 |
% change on prev. year |
12 months to Jan 2021 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
850 |
-31 |
2,995 |
-24 |
15,116 |
-23 |
| Number of cars |
36,134 |
-38 |
127,190 |
-28 |
674,728 |
-27 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,142 |
-31 |
3,396 |
-20 |
15,597 |
-16 |
| Number of cars |
87,557 |
-34 |
256,667 |
-23 |
1,193,710 |
-20 |
| Total cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,992 |
-31 |
6,391 |
-22 |
30,713 |
-19 |
| Number of cars |
123,691 |
-35 |
383,857 |
-25 |
1,868,438 |
-23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Jan 2021 |
% change on prev. year |
3 months to Jan 2021 |
% change on prev. year |
12 months to Jan 2021 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
21,542 |
-19 |
72,616 |
-16 |
258,883 |
-39 |
| Used cars |
||||||
| Number of cars |
3,530 |
-56 |
11,951 |
-18 |
55,654 |
-2 |
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.
