Consumer car finance new business volumes fell in September 2022 by 5% compared with the same month in 2021, according to new figures released by the Finance & Leasing Association (FLA).
The corresponding value of new business in September was at a similar level to the same month in 2021. In the first nine months of 2022, new business volumes were 4% higher than in the same period in 2021.
The consumer new car finance market reported a fall in new business of 6% by value and 13% by volume in September compared with the same month in 2021. In the first nine months of 2022, new business volumes in this market were 7% lower than in the same period in 2021.
The consumer used car finance market reported new business up 7% by value and 1% by volume in September compared with the same month in 2021. In the first nine months of 2022, new business volumes in this market remained 10% higher than in the same period in 2021.
Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The latest figures show that disruption to the supply of new cars continued to weigh on the consumer new car finance market which reported its lowest September new business volumes since 2010. The consumer used car finance market saw further new business growth, but at a slower rate than in recent months.
“Consumer confidence about the outlook for their personal financial situations has weakened as the impact of higher inflation and interest rates have squeezed real household incomes. The FLA’s Q4 2022 Industry Outlook Survey showed mixed expectations for growth over the next year among motor finance providers, with 24% expecting some increase in new business, 28% anticipating new business to remain stable, and 48% expecting some decrease.
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“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”