New figures released on September 8th by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in July 2022 by 3% compared with the same month in 2021. However, the corresponding value of new business increased by 5% over the same period. In the first seven months of 2022, new business volumes were also 5% higher than in the same period in 2021.
The consumer new car finance market reported a fall in new business of 5% by value and 14% by volume in July compared with the same month in 2021. In the first seven months of 2022, new business volumes in this market were 5% lower than in the same period in 2021.
The consumer used car finance market reported new business up 13% by value, and 3% by volume in July compared with the same month in 2021. In the first seven months of 2022, new business volumes in this market were 11% higher than in the same period in 2021.
Commenting on the figures, 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.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
Cars bought on finance by consumers through the point of sale
| New business | July 2022 | % change on prev. year | 3 months to Jul 2022 | % change on prev. year | 12 months to Jul 2022 | % change on prev. year |
|---|---|---|---|---|---|---|
| New cars | ||||||
| Value of advances (£m) | 1,336 | -5 | 4,290 | -12 | 17,433 | -3 |
| Number of cars | 52,239 | -14 | 169,464 | -18 | 713,004 | -7 |
| Used cars | ||||||
| Value of advances (£m) | 1,979 | 13 | 6,197 | 14 | 23,049 | 22 |
| Number of cars | 129,687 | 3 | 399,038 | 0 | 1,511,825 | 6 |
| Total cars | ||||||
| Value of advances (£m) | 3,314 | 5 | 10,487 | 2 | 40,482 | 10 |
| Number of cars | 181,926 | -3 | 568,502 | -6 | 2,224,829 | 2 |
Cars bought on finance by businesses
| New business | July 2022 | % change on prev. year | 3 months to Jul 2022 | % change on prev. year | 12 months to Jul 2022 | % change on prev. year |
|---|---|---|---|---|---|---|
| New cars | ||||||
| Number of cars | 21,194 | -16 | 65,818 | -21 | 272,609 | -12 |
| Used cars | ||||||
| Number of cars | 7,717 9 | 99 | 30,364 | 165 | 75,556 | 45 |
