Consumer car finance volumes down 4% YoY in May

Consumer car or truck finance new business volumes fell in May well 2022 by 4% compared with the same month in 2021.

New figures unveiled right now by the Finance & Leasing Affiliation (FLA) present that the corresponding value of new small business grew by 6% more than the exact same period.

In the five months to May perhaps 2022, new company volumes were being 10% larger than in the exact interval in 2021.

The buyer new motor vehicle finance industry claimed a drop in new enterprise of 7% by worth and 11% by volume in Might compared with the exact same thirty day period in 2021. In the five months to May perhaps 2022, new business enterprise volumes in this industry were 2% bigger than in the exact same interval in 2021.

The purchaser used car finance market place claimed new business up 17% by value, but 1% decrease by quantity in Might as opposed with the exact same thirty day period in 2021. In the 5 months to Might 2022, new enterprise volumes in this current market were being 15% increased than in the identical time period in 2021.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, reported: “May noticed a continuation of latest trends in the consumer automobile finance industry with motor vehicle shortages weighing on new enterprise volumes in the new car or truck finance marketplace, and increased new and employed auto selling prices leading to even more expansion in common advancements.

“Pressures on household incomes from higher inflation, fascination prices and taxes are envisioned to subdue shopper paying out in the coming months. Progress in the benefit of shopper car or truck finance new company is anticipated to be comparatively modest at 4% in Q3 2022 and 5% in Q4 2022 when compared with the similar quarter in 2021.

“As often, shoppers who are nervous about assembly payments ought to converse to their lender as shortly as doable to locate a resolution.”