Consumer car finance new business volumes fell by 24% in November 2020

Consumer car finance new business volumes fell by 24% in November 2020

Posted 14 January, 2021 at 10:00

Author Mark Bradshaw on behalf of Pronounce Concierge Service


New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported a fall in new business volumes of 24% in November 2020 compared with the same month in 2019.  In the eleven months to November 2020, new business volumes in this market were 20% lower than in the same period in 2019.

The consumer new car finance market reported a fall in new business volumes of 27% in November 2020 compared with the same month in 2019. In the eleven months to November 2020, new business volumes in this market fell by 25% compared with the same period a year earlier. The percentage of private new car sales financed by FLA members in the twelve months to November reached 94.5%. 

The consumer used car finance market reported a fall in new business volumes of 23% in November 2020 compared with the same month in 2019. In the eleven months to November 2020, new business volumes in this market fell by 17% compared with the same period a year earlier.

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

“The fall in new business volumes in November reflects the closure of many showrooms as further restrictions were introduced to deal with rising cases of Covid-19.

“UK-wide lockdowns during the first quarter of 2021 mean that the near-term outlook remains challenging. The motor finance industry will continue to support households and businesses during that time and as the economy recovers, as evidenced by the £30 billion of new finance provided to them by FLA members since the pandemic began.” 

Table 1: Cars bought on finance by consumers through the point of sale

New business

Nov 2020

% change on prev. year

3 months to Nov 2020

% change on prev. year

12 months to Nov 2020

% change on prev. year

New cars

Value of advances (£m)

1,058

-24

5,373

-2

15,789

-19

Number of cars

46,013

-27

238,061

-5

713,910

-23

Used cars

Value of advances (£m)

1,143

-18

4,668

1

16,263

-12

Number of cars

86,100

-23

354,811

-4

1,254,621

-16

Total cars

Value of advances (£m)

2,201

-21

10,041

-1

32,052

-15

Number of cars

132,113

-24

592,872

-5

1,968,531

-19

Table 2: Cars bought on finance by businesses

New business

Nov 2020

% change on prev. year

3 months to Nov 2020

% change on prev. year

12 months to Nov 2020

% change on prev. year

New cars

Number of cars

26,955

-7

83,676

-12

272,852

-37

Used cars

Number of cars

4,296

22

14,947

25

58,369

6

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