The Finance & Leasing Association (FLA) has revealed that new business in the consumer car finance market grew 12 per cent in June compared with the same month last year.
Year-to-date new business volumes are 31 per cent higher than in the same period in 2020.
The consumer used car finance market reported similar new business volumes, growing by six per cent in June compared with the same month in 2020.
In the first half of 2021, new business volumes in this market were also 31 per cent higher than in the same period in 2020.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The consumer car finance market continued to report solid growth in June, but as expected growth rates are beginning to moderate. The H1 2021 results show that new business levels have recovered strongly as restrictions to deal with the pandemic have been gradually eased.
“Our latest research suggests that the industry has maintained its optimism about the opportunities for growth despite the risks to the economic recovery from further waves of Covid-19. The FLA’s Q3 2021 industry outlook survey shows that 91 per cent of motor finance providers expected new business growth over the next twelve months.”