Motor finance firms more pessimistic  for Q3 outlook

Betty

The Finance & Leasing Association said motor finance firms are more pessimistic now than they were three months ago.

Its Q3 2022 industry outlook survey suggests 56% of motor finance respondents expect growth in new business over the next year, down from 76% in the Q2 2022 survey.

Latest figures form the Finance & Leasing Association saw used car finance value rise 10% while the volumes of used cars sold on finance fell by 3%.

The consumer new car finance market reported a fall in new business of 21% by value and 28% by volume in June compared with the same month in 2021.

Geraldine Kilkelly, director of Research and Chief Economist at the FLA, said: “In June, the new car finance market reported its largest contraction in new business volumes since February 2021 as vehicle shortages continued to disrupt the market’s recovery.

“By contrast, the business used car finance market reported record monthly new business volumes in June, and consumer used car finance new business volumes were only slightly lower than in June 2021.

“Consumer spending is expected to weaken during the second half of 2022 as incomes are squeezed by higher inflation, interest rates, and taxes.

“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 Jun 2022 %

change on prev. year

3
months to Jun 2022
% change on prev. year 12 months to Jun 2022 % change on prev. year
New cars            
Value of advances (£m) 1,435 -21 4,400 -9 17,501 -4
Number of cars 56,877 -28 175,727 -14 720,983 -8
Used cars            
Value of advances (£m) 2,051 10 6,297 16 22,818 19
Number of cars 132,305 -3 399,272 -1 1,508,235 4
Total cars            
Value of advances (£m) 3,486 -6 10,697 4 40,319 8
Number of cars 189,182 -12 574,999 -6 2,229,218 0
             
             
Table 2: Cars bought on finance by businesses
New business Jun 2022 %

change on prev.

year

3

months to Jun

2022

% change on prev. year 12 months to Jun 2022 % change on prev. year
New cars            
Number of cars 22,480 -27 68,011 -22 276,642 -11
Used cars            
Number of cars 12,760 226 27,990 116 71,715 33

 

 

 

 

 

 

Next Post

Car caught in flash flood? Here's what to do

Car caught in flash flood? This is what to do

Subscribe US Now