Consumer car finance volumes down 4% YoY in May

Customer vehicle finance new business volumes fell in Could 2022 by 4% in comparison with the identical thirty day period in 2021.

New figures released these days by the Finance & Leasing Affiliation (FLA) display that the corresponding price of new business grew by 6% more than the similar time period.

In the 5 months to May 2022, new organization volumes had been 10% better than in the very same period of time in 2021.

The consumer new auto finance market reported a tumble in new company of 7% by value and 11% by volume in May well in contrast with the very same thirty day period in 2021. In the 5 months to Could 2022, new small business volumes in this market were being 2% increased than in the same time period in 2021.

The consumer utilised auto finance market noted new enterprise up 17% by price, but 1% decrease by volume in May possibly compared with the identical month in 2021. In the five months to May possibly 2022, new enterprise volumes in this industry ended up 15% increased than in the exact same interval in 2021.

Geraldine Kilkelly, Director of Analysis and Chief Economist at the FLA, said: “May noticed a continuation of current tendencies in the client vehicle finance current market with car shortages weighing on new small business volumes in the new car finance sector, and better new and employed motor vehicle rates foremost to additional growth in regular advancements.

“Pressures on family incomes from increased inflation, interest prices and taxes are predicted to subdue purchaser paying out in the coming months. Development in the benefit of buyer motor vehicle finance new enterprise is envisioned to be reasonably modest at 4% in Q3 2022 and 5% in Q4 2022 as opposed with the very same quarter in 2021.

“As normally, clients who are worried about assembly payments ought to converse to their loan company as quickly as doable to uncover a alternative.”