New figures released today by the Finance & Leasing Association (FLA) show that new business volume in the consumer car finance market were up by 43% in January 2022 compared with the same month in 2021.
The corresponding value of new business increased by 60% over the same period. In the twelve months to January 2022, new business volumes grew by 15% compared with the same period in 2021.
The consumer new car finance market reported new business up 52% by value and 47% by volume in January compared with the same month in 2021. In the twelve months to January 2022, new business volumes in this market were 12% higher than in the same period in 2021. The percentage of private new car sales financed by FLA members in the twelve months to January 2022 was 91.2%.
The consumer used car finance market reported new business up 66% by value and 41% by volume in January compared with the same month in 2021. In the twelve months to January 2022, new business volumes in this market were 17% higher than in the same period in 2021.
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business | Jan 2022 | % change on prev. year | 3 months to Jan 2022 | % change on prev. year | 12 months to Jan 2022 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 1,307 | 52 | 3,931 | 32 | 17,951 | 19 |
| Number of cars | 53,788 | 47 | 160,538 | 28 | 754,337 | 12 |
| Used cars | ||||||
| Value of advances (£m) | 1,886 | 66 | 4,925 | 45 | 19,970 | 28 |
| Number of cars | 122,230 | 41 | 317,787 | 24 | 1,397,196 | 17 |
| Total cars | ||||||
| Value of advances (£m) | 3,193 | 60 | 8,856 | 39 | 37,921 | 24 |
| Number of cars | 176,018 | 43 | 478,325 | 25 | 2,151,533 | 15 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Jan 2022 | % change on prev.year | 3months to Jan 2022 | % change on prev. year | 12 months to Jan 2022 | % change on prev. year |
| New cars | ||||||
| Number of cars | 20,564 | -5 | 66,951 | -8 | 300,422 | 16 |
| Used cars | ||||||
| Number of cars | 8,368 | 133 | 16,709 | 39 | 53,695 | -4 |
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the Finance & Leasing Association, said:
“The strong performance of the consumer car finance market in January in part reflects the closure of showrooms during the third UK lockdown last year and the continued record-high growth in used car prices. Annual new business by value reported by the consumer car finance market was only 1% lower in January than its pre-pandemic level.
“The economic outlook in the UK and globally has weakened following the invasion of Ukraine, with consumer price inflation in the UK expected to peak at more than 8% in the first half of this year. Nevertheless, we continue to expect further growth in the market during 2022 as demand for finance for electric vehicles and used cars remains strong.”
In 2021, FLA members provided £132 billion of new finance to UK businesses and households. £45 billion of it supported the purchase of new and used cars, including almost 92% of private new car registrations
