Consumer car finance new business volumes up by 43% in January 2022

New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported new business volumes up in January 2022 by 43% 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.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, 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.”