New figures released today by the Finance & Leasing Association (FLA) show that new business volumes in the consumer car finance market fell in March 2020 by 27% compared with the same month in 2019, and by 13% in Q1 2020 as a whole.
The consumer new car finance market reported new business volumes 29% lower in March 2020 compared with the same month in 2019. The percentage of private new car sales financed by FLA members reached a record-high of 95.6% in the twelve months to March 2020.
The consumer used car finance market reported a fall in new business volumes of 24% in March 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 motor finance market has been hit hard by the lockdown in March as the main route to customers through dealerships closed. Our latest research suggests that the consumer car finance market is likely to see the value of new business fall by 29% in 2020 as a whole.
“The FLA urges the Government and Bank of England to open up financial support schemes to all lenders, including non-banks, so that they can meet the significant current demand for forbearance and provide new lending when the economy re-opens. This will also ensure that the motor finance market remains diverse, innovative and competitive after the crisis.”