Values of used cars sold by dealers rocket 34% in three months to April

The value of used cars sold on finance at the point of sales surged 34% in the February, March, April period, according to the latest figures from the Finance & Leasing Association.

But it warned that consumer spending on motors was expected to slow in the second half of the year as inflation and higher interest rates hit home.

Geraldine Kilkelly, director of research and Chief Economist at the FLA, said: “The consumer car finance market continues to be impacted by the global disruption to the supply of vehicles.

“The market reported further double-digit growth in the value of new business reflecting upward pressure on car prices, particularly in the used car market.

“Consumer spending is expected to slow as pressure builds on household incomes from higher inflation, interest rates, and taxes.  Our latest research suggests that consumer car finance new business by value will grow by 11% in the first half of 2022 and by 5% in the second half of the year.

The consumer new car finance market reported new business up 4% by value and 1% by volume in April compared with the same month in 2021. In the first four months of 2022, new business volumes in this market were 5% higher than in the same period in 2021.

The consumer used car finance market reported new business up 17% by value, but 2% lower by volume in April compared with the same month in 2021. In the first four months of 2022, new business volumes in this market were 20% higher than in the same period in 2021.

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”

 

Table 1: Cars bought on finance by consumers through the point of sale
New business Apr 2022 %

change on prev. year

3
months to Apr 2022
% change on prev. year 12 months to Apr 2022 % change on prev. year
New cars
Value of advances (£m) 1,449 4 4,820 1 18,002 9
Number of cars 58,766 1 194,079 -2 749,875 5
Used cars
Value of advances (£m) 2,048 17 6,318 34 22,253 27
Number of cars 128,176 -2 402,056 13 1,511,004 14
Total cars
Value of advances (£m) 3,498 12 11,138 17 40,255 19
Number of cars 186,942 -1 596,135 7 2,260,879 11
Table 2: Cars bought on finance by businesses
New business Apr 2022 %

change on prev.

year

3

months to Apr 2022

% change on prev. year 12 months to Apr 2022 % change on prev. year
New cars
Number of cars 23,660 -20 68,514 -12 291,196 7
Used cars
Number of cars 5,303 -2 16,389 22 56,541 8