Consumer car finance fell by 10% in August

In the eight months to August 2021, however, new business volumes in the market were 16% higher than in the same period in 2020. The percentage of private new car sales financed by FLA members in the 12 months to August 2021 was 93.3% down from 93.7% in July.

In addition to this, the consumer car finance market reported a fall in new business volumes of 10% in August 2021 when compared to the same month 2020. In addition to this, the consumer used car finance market reported a fall in new business volumes of seven percent when compared to 2020, while the value of new was at a similar level to August 2020.

Commenting on the news, the FLA’s director of research and its chief economist Geraldine Kilkelly said: “Supply issues in the new car market caused by the shortage of semi-conductors continue to hamper the recovery of the automotive industry following the pandemic.

“New business volumes in the consumer new car finance market fell for a second consecutive month in August and the near-term outlook is likely to be weaker than previously expected. By contrast, the consumer used car finance market remains relatively strong, with annual new business by value in August only one percent below its pre-pandemic peak.”