Consumer car finance new business volumes fell by 1% in April 2022

New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in April 2022 by 1% compared with the same month in 2021. The corresponding value of new business grew by 12% over the same period. In the first four months of 2022, new business volumes were 15% higher than in the same period in 2021.

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.

Commenting on the figures, 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.

"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

Note to editors:

1. Consumer motor finance reported in these figures refers to finance obtained through the point of sale.
2. In 2021, FLA members provided £132 billion of new finance to UK businesses and households. £101 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2021. £45 billion of it supported the purchase of new and used cars, including almost 92% of private new car registrations.
3. For media enquiries, please contact the FLA press office on 020 7420 9656.