New business volumes in the consumer car finance market fell in May 2020 by 78% compared with the same month in 2019, and by 41% in the five months to May 2020.
Figure released by the FLA report a fall in new business volumes of 86% in May 2020 compared with the same month in 2019, and a fall of 46% in the five months to May 2020.
The percentage of private new car sales financed by FLA members was 94.3% in the twelve months to May 2020.
The consumer used car finance market reported new business volumes 73% lower in May 2020 than in the same month in 2019, and 38% lower in the first five months of 2020.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The FLA’s latest figures suggest that while the motor finance industry continued to be severely impacted by the lockdown restrictions in May, new business volumes improved on the record low in April as the industry embraced the use of click and collect to meet customer demand.
“As the industry gears up to meet an extended period of forbearance and a strong pick-up in demand for new credit, the Government and Bank of England need to ensure that all lenders, including non-banks, have access to financial support schemes. This is vital if households and businesses are to be served by a competitive and vibrant motor finance industry post-crisis.”