FLA: Consumer car finance new business volumes fell by 5% in April 2025

Tuesday, 17 June 2025 10:10

New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in April 2025 by 5% compared with the same month in 2024. The corresponding value of new business fell by 2% over the same period. In the first four months of 2025, new business was 1% higher by volume compared with the same period in 2024. The consumer new car finance market reported new business by value in April 7% lower than in the same month...Request free trial

The consumer new car finance market reported new business by value in April 7% lower than in the same month in 2024, while new business volumes fell by 8%. In the first four months of 2025, new business volumes in this market were 11% higher than in the same period in 2024.

The consumer used car finance market reported the value of new business in April 4% lower than in the same month in 2024, while new business volumes grew by 2%. In the first four months of 2025, new business volumes in this market were 3% lower than in the same period in 2024.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:

“April saw the consumer car finance market report its first fall in new business since October 2024 as higher vehicle excise duties took effect, and consumer spending power was hit by higher energy, telephone and water bills.

“The FLA's Q2 2025 industry outlook survey results showed that three-quarters of motor finance respondents expected some increase in new business over the next year despite subdued consumer and business confidence. The prospect of further cuts in interest rates, strong consumer savings, and the potential for growth as the UK transitions to greener assets should contribute to single-digit new business growth by value over the next 12 months.

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”

Table 1: Cars bought on finance by consumers through the point of sale
New business	Apr 2025	% change on prev. year	3 months to Apr 2025	% change on prev. year	12 months to Apr 2025	% change on prev. year
New cars
Value of advances (£m)	1,222	-7	5,344	15	18,408	9
Number of cars	44,184	-8	188,666	12	647,307	3
Used cars
Value of advances (£m)	1,910	2	5,760	3	21,289	-3
Number of cars	122,418	-4	372,140	-2	1,408,665	-3
Total cars
Value of advances (£m)	3,132	-2	11,104	9	39,696	2
Number of cars	166,602	-5	560,806	2	2,055,972	-1


Table 2: Cars bought on finance by businesses
New business	Apr 2025	% change on prev. year	3 months to Apr 2025	% change on prev. year	12 months to Apr 2025	% change on prev. year
New cars
Number of cars	31,145	-10	99,247	7	355,093	-7
Used cars
Number of cars	6,205	32	14,307	6	55,318	-11

Note to editors:

Consumer car finance reported in these figures refers to finance obtained through the point of sale.
In 2024, FLA members provided £156 billion of new finance to UK businesses and households. £116 billion of this was in the form of consumer credit, almost a third of total new consumer credit written in the UK in 2024. £52 billion of it supported the purchase of new and used cars, including around 80% of private new car registrations.