Finance & Leasing Association4 November 2020
New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported growth in new business volumes of 7% in September 2020 compared with the same month in 2019. In the first nine months of 2020, new business volumes in this market were 22% lower than in the same period in 2019.
The consumer new car finance market reported new business volumes up by 5% in September 2020 compared with the same month in 2019. In the nine months to September 2020, new business volumes in this market fell by 27% compared with the same period in the previous year. The percentage of private new car sales financed by FLA members in the twelve months to September 2020 reached 94.5%, the second highest annual penetration rate on record.
The consumer used car finance market reported growth in new business volumes of 9% in September 2020 compared with the same month in 2019. In the nine months to September 2020, new business volumes in this market fell by 19% compared with the same period in the previous year.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The FLA’s latest figures show that the consumer car finance market has played a significant role in the UK’s economic recovery following the easing of the first lockdown restrictions in June.
“As we enter a new phase of national lockdowns across the UK, it is vital that that the Government and Bank of England support all lenders, including non-banks, by providing direct access to funding. This will enable the motor finance industry to meet the ongoing demand for forbearance and new credit.”
| Table 1: Cars bought on finance by consumers through the point of sale |
||||||
| New business |
Sep 2020 |
% change on prev. year |
3 months to Sep 2020 |
% change on prev. year |
12 months to Sep 2020 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Value of advances (£m) |
2,898 |
9 |
5,661 |
11 |
16,120 |
-18 |
| Number of cars |
128,345 |
5 |
254,387 |
5 |
732,842 |
-22 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,854 |
13 |
5,470 |
14 |
16,302 |
-11 |
| Number of cars |
140,347 |
9 |
414,822 |
7 |
1,269,983 |
-14 |
| Total cars |
||||||
| Value of advances (£m) |
4,752 |
11 |
11,131 |
13 |
32,421 |
-14 |
| Number of cars |
268,692 |
7 |
669,209 |
6 |
2,002,825 |
-17 |
| Table 2: Cars bought on finance by businesses |
||||||
| New business |
Sep 2020 |
% change on prev. year |
3 months to Sep 2020 |
% change on prev. year |
12 months to Sep 2020 |
% change on prev. year |
| New cars |
|
|
|
|
|
|
| Number of cars |
27,098 |
-9 |
71,853 |
-28 |
281,778 |
-35 |
| Used cars |
||||||
| Number of cars |
4,552 |
16 |
13,696 |
11 |
55,984 |
-7 |
Note to editors:
- Consumer motor finance reported in these figures refers to finance obtained through the point of sale.
- In 2019, FLA members provided £140 billion of new finance to UK businesses and households. £105 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2019. £48 billion of it supported the purchase of new and used cars, including over 91% of private new car registrations.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
