Car finance market suffers summer slowdown
- Posted by: Alan Feldberg
- Category: News
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.”