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The consumer car finance market reported a fall in new business volumes of 10% in August 2021 compared with the same month in 2020.
New figures released by the Finance & Leasing Association (FLA) show that in the eight months to August 2021, new business volumes remained 16% higher than in the same period in 2020.
The consumer new car finance market reported a fall in new business of 13% by value and 18% by volume in August compared with the same month in 2020. In the eight months to August 2021, new business volumes in this market were 16% higher than in the same period in 2020.
The percentage of private new car sales financed by FLA members in the 12 months to August 2021 was 93.3%, down from 93.7% in July.
The consumer used car finance market reported a fall in new business volumes of 7% in August compared with the same month in 2020, while the value of new was at a similar level to August 2020. In the eight months to August 2021, new business volumes in this market were also 16% higher than in the same period in 2020.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “Supply issues in the new car market caused by the shortage of semi-conductors continue to hamper the recovery of the automotive industry following the pandemic. New business volumes in the consumer new car finance market fell for a second consecutive month in August and the near-term outlook is likely to be weaker than previously expected.
“By contrast, the consumer used car finance market remains relatively strong, with annual new business by value in August only 1% below its pre-pandemic peak.”