Recovery continues in car finance market

New business volume in the consumer car finance market grew 12% in June compared to the same month in 2020.

This is according to figures released by the Finance & Leasing Association (FLA). It also reported that new business volumes were 31% higher in the first half of the year than in the same period in 2020.

The consumer new car finance market reported new business volumes up by 25% in June, while the value of new business grew by 29%. In the first half of 2021, new business volumes in this market were 31% higher than in the same period in 2020.

Meanwhile, the consumer used car finance market reported new business volumes up by six per cent and the value of new business up by nine per cent.

Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The consumer car finance market continued to report solid growth in June, but as expected growth rates are beginning to moderate. The first-half 2021 results show that new business levels have recovered strongly as restrictions to deal with the pandemic have been gradually eased.

“Our latest research suggests that the industry has maintained its optimism about the opportunities for growth despite the risks to the economic recovery from further waves of Covid-19. The FLA’s third quarter 2021 industry outlook survey shows that 91% of motor finance providers expected new business growth over the next twelve months.”