Consumer car finance new business volumes grew by 10% in March 2021

7 May 2021

New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported growth in new business volumes of 10% in March 2021, compared with the same month in 2020.  In Q1 2021, new business volumes were 16% lower than in Q1 2020.

The consumer used car finance market reported new business volumes up by 24% in March compared with the same month in 2020, while the value of new business grew by 32%.  In Q1 2021, new business volumes were 15% lower than in Q1 2020.

The consumer new car finance market reported a fall in new business volumes of 2% in March compared with the same month in 2020, while the value of new business grew by 9%. In Q1 2021, new business volumes were 18% lower than in Q1 2020.  The percentage of private new car sales financed by FLA members in the twelve months to March 2021 increased to 93.2%.

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

“In March, the consumer car finance market reported growth for the first time in six months, with used car finance new business volumes growing at their fastest rate for seven years.  A year on since the introduction of the first restrictions to deal with the pandemic, the market and wider economy continue to be impacted by ongoing restrictions. However, the latest set of figures show that the industry has adapted to meet the challenges posed by the crisis.

“FLA’s most recent research suggests that motor finance providers are increasingly optimistic about the outlook for the rest of 2021.  While mindful of the possibility of higher unemployment and a dip in confidence once the Government support schemes come to an end, 91% of respondents to our latest industry outlook survey expect new business growth over the next twelve months.”

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

New business

Mar 2021

% change on

prev. year

3 months to

Mar 2021

% change on

prev. year

12 months to

Mar 2021

% change on

prev. year

New cars

 

 

 

 

 

 

Value of advances (£m)

2,709

9

4,233

-9

15,118

-19

Number of cars

110,804

-2

176,928

-18

657,765

-25

Used cars

 

 

 

 

 

 

Value of advances (£m)

1,662

32

4,032

-11

15,621

-14

Number of cars

123,261

24

303,601

-15

1,184,509

-19

Total cars

 

 

 

 

 

 

Value of advances (£m)

4,371

17

8,265

-10

30,739

-17

Number of cars

234,065

10

480,529

-16

1,842,274

-21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2: Cars bought on finance by businesses

New business

Mar 2021

% change on prev. year

3 months to Mar 2021

% change on prev. year

12 months to Mar 2021

% change on prev. year

New cars

 

 

 

 

 

 

Number of cars

34,748

12

72,680

-8

257,954

-36

Used cars

           

Number of cars

4,665

1

11,635

-28

55,543

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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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