Consumer car finance business volumes declined by 25% during November according to the latest market data from the Finance and Leasing Association (FLA).
The FLA reported that new business volumes were 20% lower year-to-date after a total of 132,113 vehicles were sold on finance during the COVID-impacted year's penultimate month.
New car finance volumes among retail customers declined of 27%, to 46,013, leaving them 25% down year-to-date, with the value of advances from the months trading down 27% at £1.06 billion.
In the used car sector, the volume of vehicles financed by consumers in November fell by 23%, to 86,100, with advances declining 18% to £1.14bn.
The number of used cars bought on finance by businesses in November rose by 22%, from a relatively modest start point, to 4,296, meanwhile.
Geraldine Kilkelly, the FLA’s head of research and chief economist, said: “The fall in new business volumes in November reflects the closure of many showrooms as further restrictions were introduced to deal with rising cases of COVID-19.
“UK-wide lockdowns during the first quarter of 2021 mean that the near-term outlook remains challenging.
“The motor finance industry will continue to support households and businesses during that time and as the economy recovers, as evidenced by the £30 billion of new finance provided to them by FLA members since the pandemic began.”
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