New figures from the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in May 2022 by 4% compared with the same month in 2021. The corresponding value of new business grew by 6% over the same period. In the five months to May 2022, new business volumes were 10% higher than in the same period in 2021.
The consumer new car finance market reported a fall in new business of 7% by value and 11% by volume in May compared with the same month in 2021. In the five months to May 2022, new business volumes in this market were 2% higher than in the same period in 2021.
The consumer used car finance market reported new business up 17% by value, but 1% lower by volume in May compared with the same month in 2021. In the five months to May 2022, new business volumes in this market were 15% higher than in the same period in 2021.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“May saw a continuation of recent trends in the consumer car finance market with vehicle shortages weighing on new business volumes in the new car finance market, and higher new and used car prices leading to further growth in average advances.
“Pressures on household incomes from higher inflation, interest rates and taxes are expected to subdue consumer spending in the coming months. Growth in the value of consumer car finance new business is expected to be relatively modest at 4% in Q3 2022 and 5% in Q4 2022 compared with the same quarter in 2021.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”