New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew in August 2022 by 5% compared with the same month in 2021. The corresponding value of new business increased by 13% over the same period. In the first eight months of 2022, new business volumes remained 5% higher than in the same period in 2021.

The consumer new car finance market reported growth in new business of 2% by value, but a fall of 6% by volume in August compared with the same month in 2021. In the first eight months of 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 19% by value, and 8% by volume in August compared with the same month in 2021. In the first eight months of 2022, new business volumes in this market were 10% higher than in the same period in 2021.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:

“In August, the consumer car finance market reported growth in both the value and volume of new business for the first time since March this year, buoyed by another strong performance by the consumer used car finance market. Growth in average advances provided for consumer new and used car purchases remained robust despite some softening in the growth of new and used car prices.

“During the coming months when many consumers may be facing increased pressures on their household incomes, the motor finance industry remains committed to meeting demand for the financing of car purchases and providing targeted support to 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.”

*Article Source http://www.financingyourcar.org.uk