New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew by 1% in May 2026 compared with the same month in 2025. The corresponding value of new business was 5% higher over the same period. In the first five months of 2026, new business volumes grew by 3% compared with the same period in 2025.
The consumer new car finance market reported new business up 18% by value and 16% by volume in May compared with the same month in 2025. In the first five months of 2026, new business volumes in this market were 16% higher than in the same period in 2025.
The consumer used car finance market reported a fall in new business in May by both value and volume of 5% compared with the same month in 2025. In the first five months of 2026, new business volumes in this market were 3% lower than in the same period in 2025.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The consumer car finance market delivered another resilient performance in May. Demand for new car finance remained robust, with a quarter of all new business volumes financing battery electric vehicles. The used car finance market continued to perform relatively well despite ongoing pressure on household budgets and a subdued economic environment.
“Looking ahead, uncertainty linked to developments in the Middle East continues to pose risks through its potential impact on energy prices, inflation, interest rates and consumer confidence. Despite regulatory and economic challenges, FLA members remain at the forefront of the UK’s transition to zero-emission motoring and are well placed to support consumers’ access to affordable and sustainable mobility.”
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business | May 2026 | %
change on prev. year |
3 months to May 2026 |
% change on prev. year | 12 months to May 2026 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 1,628 | 18 | 6,815 | 19 | 20,654 | 12 |
| Number of cars | 56,679 | 16 | 236,351 | 17 | 723,163 | 12 |
| Used cars | ||||||
| Value of advances (£m) | 1,761 | -5 | 5,730 | -1 | 21,754 | 2 |
| Number of cars | 113,327 | -5 | 364,303 | -2 | 1,390,381 | -1 |
| Total cars | ||||||
| Value of advances (£m) | 3,389 | 5 | 12,545 | 9 | 42,407 | 7 |
| Number of cars | 170,006 | 1 | 600,654 | 5 | 2,113,544 | 3 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | May 2026 | %
change on prev. year |
3
months to May 2026 |
% change on prev. year | 12 months to May 2026 | % change on prev. year |
| New cars | ||||||
| Number of cars | 30,129 | 16 | 110,157 | 20 | 362,149 | 5 |
| Used cars | ||||||
| Number of cars | 4,925 | 9 | 16,031 | 26 | 57,830 | 7 |
Note to editors:
- The FLA Impact Report 2026, The Hidden Engine Behind UK Growth, was published on 29 June 2026. Further details may be found here.
- Consumer car finance reported in these figures refers to finance obtained through the point of sale.
- In 2025, FLA members provided £163 billion of new finance to UK businesses and households. £122 billion of this was in the form of consumer credit, almost a third of total new consumer credit written in the UK in 2024. £55 billion of it supported the purchase of new and used cars, including over 85% of private new car registrations.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
