Consumer car finance new business volumes fall by 3% in October 2020

7 December 2020

New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported a fall in new business volumes of 3% in October 2020 compared with the same month in 2019.  In the ten months to October 2020, new business volumes in this market were 20% lower than in the same period in 2019.

The consumer new car finance market reported a fall in new business volumes of 4% in October 2020 compared with the same month in 2019. In the ten months to October 2020, new business volumes in this market fell by 25% 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 October 2020 was 94.1%, up from 91.7% in the same period in 2019. 

The consumer used car finance market reported a fall in new business volumes of 2% in October 2020 compared with the same month in 2019. In the ten months to October 2020, new business volumes in this market fell by 17% 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 introduction of new restrictions during October to curb the growth in coronavirus cases has led to a softening in demand for consumer car finance.  The fall in the used car finance market in October was the first since May of this year.

“The economic outlook has improved following the promised rollout of a vaccine before Christmas. Based on this more positive outlook, our latest research suggests that consumer car finance new business by value is likely to grow by 18% in 2021, following a contraction of 20% in 2020 as whole.”  

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

New business

Oct 2020

% change on prev. year

3 months to Oct 2020

% change on prev. year

12 months to Oct 2020

% change on prev. year

New cars

 

 

 

 

 

 

Value of advances (£m)

1,416

0

5,358

6

16,128

-17

Number of cars

63,647

-4

241,586

1

730,540

-22

Used cars

 

 

 

 

 

 

Value of advances (£m)

1,640

3

5,221

9

16,519

-10

Number of cars

125,965

-2

398,756

4

1,280,399

-14

Total cars

           

Value of advances (£m)

3,056

2

10,579

8

32,647

-14

Number of cars

189,612

-3

640,342

3

2,010,939

-17

 

Table 2: Cars bought on finance by businesses

New business

Oct 2020

% change on prev. year

3 months to Oct 2020

% change on prev. year

12 months to Oct 2020

% change on prev. year

New cars

 

 

 

 

 

 

Number of cars

27,851

-24

77,089

-16

274,789

-37

Used cars

           

Number of cars

5,450

21

14,474

10

57,581

3

 Note to editors:

  1. Consumer motor finance reported in these figures refers to finance obtained through the point of sale.
  2. 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.
  3. For media enquiries, please contact the FLA press office on 020 7420 9656.

 

 

 

 

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