Growth slows for car finance market
The Finance & Leasing Association (FLA) has reported that the consumer car finance market saw new business volumes up in March 2022 by two per cent compared with the same month in 2021.
The corresponding value of new business grew by eight per cent over the same period. In the first quarter as a whole, new business volumes were 18% higher than in the same quarter in 2021.
The consumer new car finance market reported a fall in new business of six per cent by value and eight per cent by volume in March compared with the same month in 2021.
In quarter one 2022 overall, new business volumes in this market were six per cent higher than in the same quarter in 2021.
The consumer used car finance market reported new business up 31% by value and 10% by volume in March compared with the same month in 2021, while in quarter one overall, new business volumes in this market were 26% higher than in the same quarter in 2021.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The slowdown in growth reported by the consumer car finance market in March was primarily driven by the adverse impact of supply shortages in the new car market. The consumer used car finance market remained buoyant reaching new heights in March as monthly new business surpassed £2 billion for the first time.
“The UK economic outlook has weakened significantly because of the squeeze on household incomes and business profit margins from higher inflation. Pressure on household incomes this year and the ongoing vehicle supply issues mean the consumer car finance market is likely to record single-digit growth in the value of new business in 2022 overall.”
