New business volumes in the consumer car finance market dropped 1% year-on-year in February, according to the latest figures from the Finance and Leasing Association.
The consumer new car finance market reported an 8% decline in new business volumes, while the percentage of private new car sales financed by FLA members was 91.8% in the twelve months to February 2020.
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The consumer used car finance market reported new business volumes up by 1% in February 2020 compared with the same month in 2019.
Cars bought on finance by businesses in February saw significant year-on-year declines, with new cars and used cars falling 17% and 35% respectively.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “The consumer car finance market made a quiet start to 2020 and faces significant disruption to new business over the coming months. The economic impact of the coronavirus is expected to lead to a contraction in private consumption in the second quarter greater than reported in any quarter during the financial crisis.
“Motor finance is provided by a wide range of both bank and non-bank lenders who serve consumers and businesses across all sectors of the economy. The FLA is calling for urgent action by the Government and Bank of England to open up financial support schemes to all lenders, including non-banks, so that they can continue to provide new lending and meet the huge demand for forbearance.”
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By GlobalData
