Of course, a huge amount of uncertain - ty remains. When will the vaccines be distributed to the wider population, will the Government manage the vaccina - tion roll-out effectively, how quickly will the economy rebound? In truth, no one knows for sure. But my prediction is for a very, very strong rebound from the end of Q1 onwards. Demand for everything will be phenomenal, probably even record breaking. We saw this happen in July, following the end of the first lockdown, when new car year-on-year sales rose by more than 11%. In parallel, we should be prepared to pay more for what we
buy given that capacity has shrunk and the age-old economic rules of supply and demand will likely take hold (try Googling a price for a flight, you’ll see what I mean). So, finance providers need to be pre - pared. Credit demand is likely to be lifted high by this rebound and lenders should be ready to cope. You have been warned: applications for finance will explode on the back of released demand for cars, home improvements, holidays, etc. Until then, stay safe, keep your distance, wash your hands and be ready to be vaccinated.
Above: LendingMetrics Managing Director David Wylie
+44 (0) 2394 211010 | www.lendingmetrics.com
Metrics Monthly | 09
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