The consumer car finance market reported growth in new business volumes of 327% in May 2021 when compared with the same month in 2020, according to new figures released by the Finance & Leasing Association (FLA).
Additionally, in the first five months of 2021 new business volumes were 37% higher than in the same period in 2020.
The used car finance market, meanwhile, reported new business volumes up by 270% in May compared with the same month in 2020, and the value of new business grew by 293%.
Commenting on the figures, FLA’s director of research and chief economist Geraldine Kilkelly said: “The recovery in the consumer car finance market continued in May as consumers have become more optimistic of a strong economic recovery. The significant growth rates reported in April and May reflect the impact on new business levels of restrictions to deal with Covid-19 during the first lockdown and we expect these to moderate in the coming months.
“Risks to the recovery remain from ongoing restrictions that may be needed to deal with the pandemic, the impact on confidence and unemployment once government support schemes end, and increasing inflationary pressures. Nevertheless, we currently expect the industry to return to more normal new business levels during the second half of 2021.”