Consumer car finance new business volumes fell by 3% in July 2022

The consumer new car finance market reported a fall in new business of 5% by value and 14% by volume in July compared with the same month in 2021. In the first seven months of 2022, new business volumes in this market were 5% lower than in the same period in 2021.

The consumer used car finance market reported new business up 13% by value, and 3% by volume in July compared with the same month in 2021. In the first seven months of 2022, new business volumes in this market were 11% higher than in the same period in 2021.

Commenting on the figures, 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.

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”

Cars bought on finance by consumers through the point of sale

Cars bought on finance by businesses