Car finance market down a third
The consumer car finance market fell 35% in January compared to the same month in 2020, according to figures released by the Finance & Leasing Association (FLA).
It found the consumer new car finance market reported a fall in new business volumes of 38%, while the consumer used car finance market reported a similar fall in in January as new business volumes decreased by 34%.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The impact of the latest UK-wide lockdown restrictions has not been as severe as the first lockdown introduced last March with many dealerships able to offer click and collect or deliver services. The value of new business in the consumer car finance market is expected to fall by 16% in Q1 2021 as a whole.
“Our latest research suggests that once showrooms re-open there will be a strong recovery in the consumer car finance market, with the value of new business expected to grow by 17% in 2021, and a further 12% growth forecast for 2022.”
