The consumer car finance market saw a 3% year-on-year decline in new business volumes in October, according to the latest data from the Finance and Leasing Association (FLA).

The consumer new car finance market reported a fall in new business volumes of 4% in October, when compared with the same month in 2019. In the 10 months to October 2020, new business volumes in this market fell by 25% compared with the same period in the previous year.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The percentage of private new car sales financed by FLA members in the twelve months to October 2020 was 94.1%, up from 91.7% in the same period in 2019.

The consumer used car finance market reported a fall in new business volumes of 2% in October 2020 compared with the same month in 2019. In the ten months to October 2020, new business volumes in this market fell by 17% compared with the same period in the previous year.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The introduction of new restrictions during October to curb the growth in coronavirus cases has led to a softening in demand for consumer car finance.  The fall in the used car finance market in October was the first since May of this year.

“The economic outlook has improved following the promised rollout of a vaccine before Christmas. Based on this more positive outlook, our latest research suggests that consumer car finance new business by value is likely to grow by 18% in 2021, following a contraction of 20% in 2020 as whole.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The decline follows a positive month in September, when the market saw year-on-year growth of 7%. The consumer new car finance market reported new business volumes up by 5% in September 2020 compared with the same month in 2019. In the nine months to September 2020, new business volumes in this market fell by 27% compared with the same period in the previous yea