It marks a huge rise from the rest of the year, which is currently 37 per cent higher than the first five months of 2020. Information recently released by the Finance & Leasing Association (FLA) found that new business volumes were almost three-and-a-half times higher than the same month in 2020.
The value of new business also grew by 555 per cent.
The consumer new car finance market saw an even bigger rise with a hike of 514 per cent compared to May 2020.
In the first five months of 2021, new business volumes in the market rose by 32 per cent against 2020.
The spectacular year-on-year rises are largely down to the Covid-19 pandemic.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: ‘The recovery in the consumer car finance market continued in May as consumers have become more optimistic of a strong economic recovery.
‘The significant growth rates reported in April and May reflect the impact on new business levels of restrictions to deal with Covid-19 during the first lockdown and we expect these to moderate in the coming months.
‘Nevertheless, we currently expect the industry to return to more normal new business levels during the second half of 2021.’
‘Risks to the recovery remain from ongoing restrictions that may be needed to deal with the pandemic, the impact on confidence and unemployment once Government support schemes end, and increasing inflationary pressures.
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