The consumer car finance market saw a 2% drop in value and 5% drop in volume in January, according to the latest figures from the Finance and Leasing Association (FLA).

New cars saw a 6% decline in value year-on-year, while volumes in the new car market dropped 10%. In the used car market there was a 2% uplift in value year-on-year, while volumes dipped 2% to 131,860 vehicles.

Commenting on the figures and the industry’s response to the Coronavirus, Stephen Haddrill, Director General at the FLA, said: “It’s evident that FLA members are supporting individual customers and small businesses right across the economy, but they need the government and regulators to extend the new financial support schemes to the full range of lenders – banks and independents – to ensure that prompt funding can reach the widest possible numbers of customers at this critical time.”

Providing more detail on the figures, Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The market performance in January shows the wide range of support provided by FLA members to the real economy. Although the next few months will be extremely challenging for all industries as consumer demand and business activity shrink significantly, it is vital to maintain the availability of funding so that businesses can meet the upsurge in demand once the isolation period ends.”