THE consumer new car finance market fell 8% in February while business volumes dropped by 1% compared with the same month in 2019.
Worse news is expected when figures for March are revealed in May and the Finance and Leasing Association is calling for urgent action by the Government and Bank of England to open up financial support schemes to all lenders.
Figures from the FLA show the percentage of private new car sales financed by FLA members was 91.8% in the 12 months to February 2020.
The consumer used car finance market reported new business volumes up by 1% in February 2020 compared with the same month in 2019.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “The consumer car finance market made a quiet start to 2020 and faces significant disruption to new business over the coming months.
“The economic impact of the coronavirus is expected to lead to a contraction in private consumption in the second quarter greater than reported in any quarter during the financial crisis.
“Motor finance is provided by a wide range of both bank and non-bank lenders who serve consumers and businesses across all sectors of the economy.
“The FLA is calling for urgent action by the Government and Bank of England to open up financial support schemes to all lenders, including non-banks, so that they can continue to provide new lending and meet the huge demand for forbearance.”
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business |
Feb 2020 |
% change on prev. year |
3 months to Feb 2020 |
% change on prev. year |
12 months to Feb 2020 |
% change on prev. year |
| New cars | ||||||
| Value of advances (£m) |
910 |
-4 |
3,456 |
2 |
19,520 |
0 |
| Number of cars |
44,747 |
-8 |
159,134 |
-5 |
922,722 |
-4 |
| Used cars |
|
|
|
|
|
|
| Value of advances (£m) |
1,604 |
6 |
4,436 |
6 |
18,504 |
4 |
| Number of cars |
125,536 |
1 |
348,352 |
2 |
1,489,119 |
2 |
| Total cars | ||||||
| Value of advances (£m) |
2,514 |
2 |
7,893 |
4 |
38,024 |
2 |
| Number of cars |
170,283 |
-1 |
507,486 |
-1 |
2,411,841 |
-1 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business |
Feb 2020 |
% change on prev. year |
3 months to Feb 2020 |
% change on prev. year |
12 months to Feb 2020 |
% change on prev. year |
| New cars | ||||||
| Number of cars |
21,231 |
-17 |
80,664 |
-9 |
421,837 |
-4 |
| Used cars | ||||||
| Number of cars |
3,573 |
-35 |
14,927 |
3 |
55,449 |
-2 |
