September recorded the UK’s lowest new automotive finance volumes since 2010 as provide points continued to disrupt the automotive sector, the Finance & Leasing Affiliation (FLA) has reported.
The general quantity of latest enterprise throughout new and used vehicles fell by 5%, to 570,310, throughout what’s historically a key month for the retail sector however remained flat from a price perspective, at £4.07 billion.
The consequence left new enterprise volumes 4% up year-to-date.
Within the new automotive sector shopper automotive finance delivered a 6% decline within the worth of latest enterprise, to £2.08bn, as volumes dipped 13% by quantity to 82,831 regardless of a 4.6% uplift in registrations during the key numberplate change month.
Geraldine Kilkelly, director of analysis and chief economist on the FLA, stated: “The most recent figures present that disruption to the provision of latest vehicles continued to weigh on the buyer new automotive finance market which reported its lowest September new enterprise volumes since 2010.
“The patron used automotive finance market noticed additional new enterprise development, however at a slower fee than in latest months.”
The patron used automotive finance market reported new enterprise up 7% by worth, to £1.99bn, and 1% by quantity, to 127,843, in September in contrast with the identical month in 2021.
This left new enterprise volumes on this market up 10% year-to-date.
Final week the Society of Motor Producers and Merchants (SMMT) reported that the volume of sales transactions dipped 12.2% to go away the sector down 9.7% year-to-date at 5,319,482 transactions.
Kilkelly stated: “Client confidence in regards to the outlook for his or her private monetary conditions has weakened because the impression of upper inflation and rates of interest have squeezed actual family incomes.
“The FLA’s This fall 2022 Business Outlook Survey confirmed combined expectations for development over the subsequent yr amongst motor finance suppliers, with 24% anticipating some improve in new enterprise, 28% anticipating new enterprise to stay steady, and 48% anticipating some lower.
“As all the time, clients who’re anxious about assembly funds ought to converse to their lender as quickly as doable to discover a resolution.”