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Auto Finance News UK consumer car finance returns to growth in July Published: 9th September 2020 Share New business in the UK consumer car finance market grew 19% by value and 9% by volume in July 2020 compared with the same period last year, according to the Finance and Leasing Association (FLA). The increase marks a return to growth compared to the height of the Covid-19 pandemic, as volumes were down 30% during the previous seven months. The figures for July, a traditionally a quieter month for UK car finance, bode well for the key registration month of September. During July, new car finance rose 20% by value and 9% by volume, compared to a 36% decline over the preceding seven months. Used car finance grew 18% by value and 9% by volume during the same period, following a collective 26% decline throughout the rest of the year. Geraldine Kilkelly, the FLA’s head of research and chief economist, said: “July saw the consumer new car finance market report growth for the first time this year. “Both consumer new and used car finance markets saw new business volumes return to normal levels in July after the record-lows reported in April. “The pick-up in the economy since June has been encouraging, but the sustainability of the recovery remains in doubt. Our latest research suggests that new business in the consumer car finance market is likely to fall by 20% in 2020 as a whole. “We continue to urge the Government and Bank of England to ensure that there is adequate support for all lenders so that they can meet the ongoing demand from customers for forbearance and at the same time meet demand for new credit during what will be a difficult period for the economy.” Cars bought on finance by consumers through the point of sale New business July 2020 % change on prev yr 3 mths to July 2020 % change on prev yr 12 mths to July 2020 % change on prev yr New cars Value of advances (£m) 1,720 20 3,359 -28 15,825 -19 Number of cars 76,528 9 150,216 -33 727,694 -23 Used cars Value of advances (£m) 1,945 18 3,990 -15 15,942 -12 Number of cars 146,442 9 303,443 -21 1,255,755 -15 Total cars Value of advances (£m) 3,666 19 7,349 -22 31,766 -15 Number of cars 222,970 9 453,659 -25 1,983,449 -18 Asset Finance Connect Asset Finance Connect brings you news and updates about UK and European auto, equipment and asset finance providers. Sign up to our newsletter Featured Stories NewsVolkswagen Group hits highest European market share in 3 years NewsAuto Trader predicts growth of new and used car market in 2025 NewsOctober sees modest 1.1% growth in new EU car registrations Auto Finance
