New figures released last week by the Finance & Leasing Association (FLA) show that the consumer car finance market reported new business volumes up in November 2021 by 33% compared with the same month in 2020. In the eleven months to November 2021, new business volumes were 9% higher than in the same period in 2020.
Change of vehicle means change of insurance details to, so it’s a good economic indicator for insurers and brokers.
The consumer new car finance market reported new business up 37% by value and 32% by volume in November compared with the same month in 2020. In the eleven months to November 2021, new business volumes in this market were 6% higher than in the same period in 2020. The percentage of private new car sales financed by FLA members in the twelve months to November 2021 was 92.3%.
The consumer used car finance market reported new business up 55% by value and 33% by volume in November compared with the same month in 2020. In the eleven months to November 2021, new business volumes in this market were 11% higher than in the same period in 2020.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The strong growth reported by the consumer car finance market in November reflects low new business volumes reported a year earlier as the UK entered another lockdown to deal with rising cases of Covid-19.
“The market’s recovery continues to be disrupted by supply side shortages and the increasing squeeze on household disposable incomes from higher inflation and interest rates. New business volumes in the consumer car finance market are likely to be just over 2.1 million cars in 2021 as a whole, 12% lower than at the onset of the pandemic in February 2020.”
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