New business volumes in the consumer car finance market dropped 94% year-on-year in April, according to the latest figures from the Finance & Leasing Association (FLA).
The figures also revealed a fall of 37% in the first four months of 2020. The percentage of private new car sales financed by FLA members was 94.5% in the twelve months to April 2020.
The consumer used car finance market reported a fall in new business volumes of 92% in April 2020 compared with the same month in 2019, and a contraction of 30% in the first four months of 2020.
For new cars, new business values dropped 97% year-on-year to £56m in April, while the number of new cars financed also dropped 97% year-on-year to 2,580.
Commenting on the figures, Geraldine Kilkelly, head of research and chief economist at the FLA, said: “While the motor finance market has been the hardest hit of FLA markets, the industry has been innovative in its use of click and collect during the lockdown. With the welcome opening of showrooms from the beginning of June, the motor finance market is ready to meet the demand for new finance from households and businesses.
“The FLA calls on the government and Bank of England to take immediate action to open up financial support schemes to all lenders, including non-banks, so that they can meet this pent-up demand for finance and the huge ongoing requests for forbearance.”