Consumer car finance new business volumes fell by 24% in November 2020

New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported a fall in new business volumes of 24% in November 2020 compared with the same month in 2019. In the eleven months to November 2020, new business volumes in this market were 20% lower than in the same period in 2019.

The consumer new car finance market reported a fall in new business volumes of 27% in November 2020 compared with the same month in 2019. In the eleven months to November 2020, new business volumes in this market fell by 25% compared with the same period a year earlier. The percentage of private new car sales financed by FLA members in the twelve months to November reached 94.5%.

The consumer used car finance market reported a fall in new business volumes of 23% in November 2020 compared with the same month in 2019. In the eleven months to November 2020, new business volumes in this market fell by 17% compared with the same period a year earlier.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “The fall in new business volumes in November reflects the closure of many showrooms as further restrictions were introduced to deal with rising cases of Covid-19.

“UK-wide lockdowns during the first quarter of 2021 mean that the near-term outlook remains challenging. The motor finance industry will continue to support households and businesses during that time and as the economy recovers, as evidenced by the £30 billion of new finance provided to them by FLA members since the pandemic began.”