The consumer auto loan market recorded a 10% drop in new business volumes in August 2021 compared to the same month in 2020.

New figures released by the Finance & Leasing Association (FLA) show that in the eight months to August 2021, new business volumes remained 16% higher than during the same period in 2020.

The consumer new car finance market saw a 13% drop in new business in value and 18% in volume in August compared to the same month in 2020. In the eight months ending August 2021, New business volumes in this market increased by 16%. than at the same period in 2020.

The percentage of private sales of new cars funded by FLA members in the 12 months to August 2021 was 93.3%, up from 93.7% in July.

The consumer used car finance market recorded a 7% drop in new business volumes in August compared to the same month in 2020, while the value of new was at a similar level to August 2020. At In the eight months to August 2021, new business volumes in this market were also 16% higher than the same period in 2020.

Geraldine Kilkelly, director of research and chief economist at the FLA, said: “Supply problems in the new car market caused by the semiconductor shortage continue to hamper the recovery of the auto industry from the pandemic. New business volumes in the consumer new car finance market fell for the second consecutive month in August and the near-term outlook is expected to be weaker than expected.

“In contrast, the consumer used car finance market remains relatively strong, with new annual business in value in August just 1% below its pre-pandemic peak.. ”