Consumer car finance new business volumes fell by 2% in May 2025 - Finance & Leasing Association

Tuesday, 15 July 2025 11:12

New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in May 2025 by 2% compared with the same month in 2024. The corresponding value of new business grew by 1% over the same period. In the first five months of 2025, new business volumes were at a similar level to the same period in 2024. The consumer new car finance market reported new business by value in May 1% lower than in the same month in 2024,...Request free trial

The consumer new car finance market reported new business by value in May 1% lower than in the same month in 2024, while new business volumes fell by 2%. In the first five months of 2025, new business volumes in this market were 8% higher than in the same period in 2024.

The consumer used car finance market reported the value of new business in May 3% higher than in the same month in 2024, while new business volumes fell by 2%. In the first five 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:

“Both consumer new car finance and used car finance markets reported a modest fall in new business volumes of 2% in May. The consumer car finance market overall saw new business up 6% by value in the first five months of 2025, while volumes held steady.

“Our latest research suggests that the value of consumer car finance new business in 2025 would grow by 7%, with 7% growth in the new car finance market and 6% growth in the used car finance market. Consumer confidence has improved slightly in recent months with the prospect of further cuts in interest rates in the coming 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	May 2025	% change on prev. year	3 months to May 2025	% change on prev. year	12 months to May 2025	% change on prev. year
New cars
Value of advances (£m)	1,380	-1	5,746	10	18,396	8
Number of cars	48,817	-2	202,207	7	646,080	3
Used cars
Value of advances (£m)	1,863	3	5,777	4	21,332	-2
Number of cars	120,152	-2	371,721	-1	1,405,918	-3
Total cars
Value of advances (£m)	3,244	1	11,523	7	39,729	3
Number of cars	168,969	-2	573,928	2	2,051,998	-1


Table 2: Cars bought on finance by businesses
New business	May 2025	% change on prev. year	3 months to May 2025	% change on prev. year	12 months to May 2025	% change on prev. year
New cars
Number of cars	31,567	4	103,897	5	356,230	-7
Used cars
Number of cars	4,452	6	12,573	-5	53,154	-13

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.