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Consumer car finance grows a staggering 43% y-o-y in January
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Consumer car finance grows a staggering 43% y-o-y in January

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% ...
Neil Thomason
March 2022
Consumer car finance grows a staggering 43% y-o-y in January

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 businessJan 2022% change on prev. year3
months to Jan 2022
% change on prev. year12 months to Jan 2022% change on prev. year
New cars      
Value of advances (£m)1,307523,9313217,95119
Number of cars53,78847160,53828754,33712
Used cars      
Value of advances (£m)1,886664,9254519,97028
Number of cars122,23041317,787241,397,19617
Total cars      
Value of advances (£m)3,193608,8563937,92124
Number of cars176,01843478,325252,151,53315
       
       
Table 2: Cars bought on finance by businesses
New businessJan 2022% change on prev.year3months to Jan 2022% change on prev. year12 months to Jan 2022% change on prev. year
New cars      
Number of cars20,564-566,951-8300,42216
Used cars      
Number of cars8,36813316,7093953,695-4

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