Consumer Car Finance Up By 327%

If this new set of figures from the Finance & Leasing Association (FLA) don’t give us a warm glow then we must be dead inside.  The auto sector recovery is continuing and there is genuine cause for optimism ahead.

The FLA is reporting that the consumer car finance market grew in new business volumes of 327% in May 2021 compared with the same month in 2020.  And that in the first five months of 2021, new business volumes were 37% higher than in the same period in 2020.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:  “Consumers have become more optimistic of a strong economic recovery.  The significant growth rates reported in April and May reflect the impact on new business levels of restrictions to deal with Covid-19 during the first lockdown and we expect these to moderate in the coming months. 

“Risks to the recovery remain from ongoing restrictions that may be needed to deal with the pandemic, the impact on confidence and unemployment once Government support schemes end, and increasing inflationary pressures. Nevertheless, we currently expect the industry to return to more normal new business levels during the second half of 2021.”