Car finance market collapses by 94%
New volumes in the consumer car finance market slumped 94% in April compared to the same month in 2019, and by 33% in the first four months of the year.
This is according to new figures released by the Finance & Leasing Association (FLA).
The new car finance market was down 97% in April 2020 compared with the same month in 2019, while the consumer used car finance market was 92% down in April.
Commenting on the figures, Geraldine Kilkelly, head of research and chief economist at the FLA, said: “While the motor finance market has been the hardest hit of FLA markets, the industry has been innovative in its use of click and collect during the lockdown. With the welcome opening of showrooms from the beginning of June, the motor finance market is ready to meet the demand for new finance from households and businesses.
“The FLA calls on the government and Bank of England to take immediate action to open up financial support schemes to all lenders, including non-banks, so that they can meet this pent-up demand for finance and the huge ongoing requests for forbearance.”
