The consumer car finance market reported 10% growth in new business volumes in March this year, compared with the same month in 2020, according to the Finance & Leasing Association (FLA).
The consumer used car finance market reported new business volumes up by 24% in March compared with the same month in 2020, while the value of new business grew by 32%. However, new business volumes in the first quarter of 2021 were 15% lower than in the first quarter of 2020.
The percentage of private new car sales financed by FLA members in the twelve months to March 2021 increased to 93.2%.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: “In March, the consumer car finance market reported growth for the first time in six months, with used car finance new business volumes growing at their fastest rate for seven years.
“A year on since the introduction of the first restrictions to deal with the pandemic, the market and wider economy continue to be impacted by ongoing restrictions. However, the latest set of figures show that the industry has adapted to meet the challenges posed by the crisis.
“FLA’s most recent research suggests that motor finance providers are increasingly optimistic about the outlook for the rest of 2021. While mindful of the possibility of higher unemployment and a dip in confidence once the Government support schemes end, 91% of respondents to our latest industry outlook survey expect new business growth over the next twelve months.”