Car finance market enjoys October uptick

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew in October 2022 by 4% compared with the same month in 2021.

The corresponding value of new business increased by 9% over the same period.

In the 10 months to October 2022, new business volumes were 4% higher than in the same period in 2021.

The consumer new car finance market reported growth in new business of 12% by value and 2% by volume in October compared with the same month in 2021, while in the 10 months to October 2022, new business volumes in this market were 6% lower than in the same period in 2021.

The consumer used car finance market reported new business up 7% by value and 5% by volume in October compared with the same month in 2021. In the 10 months to October 2022, new business volumes in this market were 9% higher than in the same period in 2021.

Geraldine Kilkelly, director of research and chief economist at the FLA, said: “In October, the consumer new car finance market reported monthly growth for only the fourth time so far this year, while further growth in the consumer used car finance market reflected the consistently robust performance by this market over the same period.

“The point-of-sale consumer car finance market is expected to report new business volumes in excess of 2.2 million vehicles in 2022 as whole, four per cent higher than in 2021, but 10% lower than in 2019 as supply shortages continue to weigh on the recovery of the new car market. The gradual easing of these shortages should support new business volumes over the next twelve months despite the pressure on real household incomes.”