Car finance market suffers summer slowdown
Consumer car finance new business volumes fell by three per cent in July 2022 compared with the same month in 2021, according to the Finance & Leasing Association.
However, the value of new business increased by five per cent over the same period.
The consumer new car finance market reported a fall in new business of five per cent by value and 14% by volume in July compared with the same month in 2021, while the consumer used car finance market reported new business up 13% by value, and three per cent by volume.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The consumer new car finance market remained subdued in July as shortages of supply continued to disrupt the market’s post-pandemic recovery. By contrast, the consumer used car finance market reported its ninth consecutive month of double-digit growth in the value of new business and a return to growth in new business volumes.
“Despite the challenges posed by the worst inflationary environment since the 1970s, the motor finance industry remains in a strong position to continue to meet demand for the financing of car purchases in the coming months, while providing targeted support to those customers who may need it.”
