Consumer car finance new business volumes fell by 5% in September 2022

10 November 2022

New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in September 2022 by 5% compared with the same month in 2021. The corresponding value of new business in September was at a similar level to the same month in 2021. In the first nine months of 2022, new business volumes were 4% higher than in the same period in 2021.

The consumer new car finance market reported a fall in new business of 6% by value and 13% by volume in September compared with the same month in 2021. In the first nine months of 2022, new business volumes in this market were 7% lower than in the same period in 2021.

The consumer used car finance market reported new business up 7% by value and 1% by volume in September compared with the same month in 2021. In the first nine months of 2022, new business volumes in this market remained 10% higher than in the same period in 2021.

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

“The latest figures show that disruption to the supply of new cars continued to weigh on the consumer new car finance market which reported its lowest September new business volumes since 2010.  The consumer used car finance market saw further new business growth, but at a slower rate than in recent months.

“Consumer confidence about the outlook for their personal financial situations has weakened as the impact of higher inflation and interest rates have squeezed real household incomes.  The FLA’s Q4 2022 Industry Outlook Survey showed mixed expectations for growth over the next year among motor finance providers, with 24% expecting some increase in new business, 28% anticipating new business to remain stable, and 48% expecting some decrease.

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”

 

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

New business

Sep 2022

%

 change on prev. year

3
months to Sep 2022

% change on prev. year

12 months to Sep 2022

% change on prev. year

New cars

 

 

 

 

 

 

Value of advances (£m)

2,076

-6

4,338

-4

17,331

1

Number of cars

82,831

-13

172,460

-12

698,806

-4

Used cars

 

 

 

 

 

 

Value of advances (£m)

1,989

7

6,113

14

23,450

24

Number of cars

127,843

1

397,850

5

1,527,391

9

Total cars

 

 

 

 

 

 

Value of advances (£m)

4,065

0

10,452

6

40,781

13

Number of cars

210,674

-5

570,310

-1

2,226,197

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2: Cars bought on finance by businesses

New business

Sep 2022

%

 change on prev.

year

3

months to Sep

2022

% change on prev. year

12 months to Sep 2022

% change on prev. year

New cars

 

 

 

 

 

 

Number of cars

25,555

-10

64,222

-14

266,572

-14

Used cars

           

Number of cars

5,280

29

18,339

67

79,072

57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note to editors:

 

  1. Consumer car finance reported in these figures refers to finance obtained through the point of sale.
  2. In 2021, FLA members provided £132 billion of new finance to UK businesses and households. £101 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2021. £45 billion of it supported the purchase of new and used cars, including almost 92% of private new car registrations.
  3. FLA policy priorities for 2022 and beyond may be found here.
  4. For media enquiries, please contact the FLA press office on 020 7420 9656.

 

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