Car finance market down a quarter
New figures released by the Finance & Leasing Association (FLA) show that the consumer car finance market reported a fall in new business volumes of 24% in November 2020 compared with the same month in 2019.
In the 11 months to November 2020, new business volumes in this market were 20% lower than in the same period in 2019.
New business volumes fell 27% in November 2020 compared with the same month in 2019 and was down 25% for the year, while the used car finance market reported a fall of 23% in November 2020 and was 17% down for the first 11 months of the year.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The fall in new business volumes in November reflects the closure of many showrooms as further restrictions were introduced to deal with rising cases of Covid-19. UK-wide lockdowns during the first quarter of 2021 mean that the near-term outlook remains challenging. The motor finance industry will continue to support households and businesses during that time and as the economy recovers, as evidenced by the £30bn of new finance provided to them by FLA members since the pandemic began.”
