Consumer car finance market falls by 1% in February 2020

Tuesday, 14 April 2020 13:13

New figures released today by the Finance & Leasing Association (FLA) show that new business volumes in the consumer car finance market fell in February 2020 by 1% compared with the same month in 2019. The consumer new car finance market reported new business volumes 8% lower in February 2020 compared with the same month in 2019. The percentage of private new car sales financed by FLA members was 91.8% in the twelve months to February 2020. The...Request free trial

The consumer new car finance market reported new business volumes 8% lower in February 2020 compared with the same month in 2019. The percentage of private new car sales financed by FLA members was 91.8% in the twelve months to February 2020.

The consumer used car finance market reported new business volumes up by 1% in February 2020 compared with the same month in 2019.

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

“The consumer car finance market made a quiet start to 2020 and faces significant disruption to new business over the coming months. The economic impact of the coronavirus is expected to lead to a contraction in private consumption in the second quarter greater than reported in any quarter during the financial crisis.

“Motor finance is provided by a wide range of both bank and non-bank lenders who serve consumers and businesses across all sectors of the economy. The FLA is calling for urgent action by the Government and Bank of England to open up financial support schemes to all lenders, including non-banks, so that they can continue to provide new lending and meet the huge demand for forbearance.”

Table 1: Cars bought on finance by consumers through the point of sale
New business	Feb 2020	% change on prev. year	3 months to Feb 2020	% change on prev. year	12 months to Feb 2020	% change on prev. year
New cars
Value of advances (£m)	910	-4	3,456	2	19,520	0
Number of cars	44,747	-8	159,134	-5	922,722	-4
Used cars
Value of advances (£m)	1,604	6	4,436	6	18,504	4
Number of cars	125,536	1	348,352	2	1,489,119	2
Total cars
Value of advances (£m)	2,514	2	7,893	4	38,024	2
Number of cars	170,283	-1	507,486	-1	2,411,841	-1

Table 2: Cars bought on finance by businesses
New business	Feb 2020	% change on prev. year	3 months to Feb 2020	% change on prev. year	12 months to Feb 2020	% change on prev. year
New cars
Number of cars	21,231	-17	80,664	-9	421,837	-4
Used cars
Number of cars	3,573	-35	14,927	3	55,449	-2

Note to editors:

Consumer motor finance reported in these figures refers to finance obtained through the point of sale.
In 2019, FLA members provided £140 billion of new finance to UK businesses and households. £105 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2019. £48 billion of it supported the purchase of new and used cars, including over 91% of private new car registrations.