UK consumer car finance returns to growth in July

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