Finance & Leasing Association11 March 2022
New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported new business volumes up in January 2022 by 43% compared with the same month in 2021. The corresponding value of new business increased by 60% over the same period. In the twelve months to January 2022, new business volumes grew by 15% compared with the same period in 2021.
The consumer new car finance market reported new business up 52% by value and 47% by volume in January compared with the same month in 2021. In the twelve months to January 2022, new business volumes in this market were 12% higher than in the same period in 2021. The percentage of private new car sales financed by FLA members in the twelve months to January 2022 was 91.2%.
The consumer used car finance market reported new business up 66% by value and 41% by volume in January compared with the same month in 2021. In the twelve months to January 2022, new business volumes in this market were 17% 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 strong performance of the consumer car finance market in January in part reflects the closure of showrooms during the third UK lockdown last year and the continued record-high growth in used car prices. Annual new business by value reported by the consumer car finance market was only 1% lower in January than its pre-pandemic level.
“The economic outlook in the UK and globally has weakened following the invasion of Ukraine, with consumer price inflation in the UK expected to peak at more than 8% in the first half of this year. Nevertheless, we continue to expect further growth in the market during 2022 as demand for finance for electric vehicles and used cars remains strong.”
| Table 1: Cars bought on finance by consumers through the point of sale |
||||||
| New business |
Jan 2022 |
% change on prev. year |
3 |
% change on prev. year |
12 months to Jan 2022 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,307 |
52 |
3,931 |
32 |
17,951 |
19 |
| Number of cars |
53,788 |
47 |
160,538 |
28 |
754,337 |
12 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,886 |
66 |
4,925 |
45 |
19,970 |
28 |
| Number of cars |
122,230 |
41 |
317,787 |
24 |
1,397,196 |
17 |
| Total cars |
|
|
|
|
|
|
| Value of advances (£m) |
3,193 |
60 |
8,856 |
39 |
37,921 |
24 |
| Number of cars |
176,018 |
43 |
478,325 |
25 |
2,151,533 |
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Jan 2022 |
% change on prev. year |
3 months to Jan 2022 |
% change on prev. year |
12 months to Jan 2022 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
20,564 |
-5 |
66,951 |
-8 |
300,422 |
16 |
| Used cars |
||||||
| Number of cars |
8,368 |
133 |
16,709 |
39 |
53,695 |
-4 |
Note to editors:
- Consumer motor finance reported in these figures refers to finance obtained through the point of sale.
- 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.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
