Car finance market enjoys strong September
New figures released by the Finance & Leasing Association (FLA) show that the consumer car finance market reported growth in new business volumes of seven per cent 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 five per cent 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 12 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 nine per cent in September 2020 compared with the same month in 2019.
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.”
