Car finance market endures double-dip drop
The consumer car finance market reported a fall in new business volumes of 12% in December, compared to the same month the previous year.
This is according to the Finance & Leasing Association (FLA), which found that in 2020 as a whole, new business volumes in this market were 21% lower than in 2019.
The consumer new car finance market reported a fall in new business volumes of 18% in December compared with the same month in 2019, with a 25% drop over the year, while the consumer used car finance market fell eight per cent in December and 18% over the year.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The lifting of the second national lockdown in England in December contributed to an easing in the rate of contraction in new business in both the consumer new and used car finance market. Despite the restrictions introduced throughout last year as a result of the pandemic, the consumer car finance market provided finance for over 1.9 million cars in 2020 as a whole.
“The vaccine rollout in the UK has improved the outlook for the UK economy in the second half of 2021. Almost two-thirds of motor finance respondents to the FLA’s Q1 2021 Industry Outlook Survey expected some growth in new business over the next year if economic conditions improve.”
