5 May 2020
Commenting on the figures published today by the Society for Motor Manufacturers and Traders (SMMT), which showed that new car registrations were 97% lower in April than the same month last year, Stephen Haddrill, Director General of the Finance & Leasing Association said:
“While the measures to control the spread of Coronavirus are entirely necessary, the SMMT’s figures show the stark reality of lockdown not just for motor manufacturing, but also for the associated sectors that work alongside it.
“FLA members have been providing unprecedented levels of support to customers whose income has been disrupted, but the cost of doing so is causing severe strain on firms as new lending in this market has been affected by the closure of dealerships. Our figures for March, to be released later this week, will show that consumer motor finance new business volumes fell by 27%.
“Government help is needed to ensure that the non-bank lenders in this sector have access to funding so they can continue to support customers, but also begin lending again as we emerge from lockdown.”
Notes to editors
- In 2019, FLA members provided £140.3 billion of new finance to UK businesses and households. £104.7 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2019. £35.7 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2019.
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