New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell 1% in January 2026 compared with the same month in 2025. The corresponding value of new business was 3% higher over the same period. In the twelve months to January 2026, new business volumes grew by 2% compared with the same period in 2025.
The consumer new car finance market reported new business up 13% by both value and volume in January compared with the same month in 2025. In the twelve months to January 2026, new business volumes in this market were 9% higher than in the same period in 2025.
The consumer used car finance market reported the value of new business 2% lower in January than in the same month in 2025, while new business volumes fell by 5%. In the twelve months to January 2026, new business volumes in this market were 1% 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 new car finance market made an encouraging start to 2026, carrying forward the momentum built at the end of last year. While the used car finance market began the year more slowly, annual new business volumes remained broadly stable, highlighting the sector’s underlying resilience.
“However, the outlook has become more challenging. Rising tensions in the Middle East are pushing up global energy costs, and inflation is now expected to increase rather than ease, delaying any move towards lower interest rates and placing renewed pressure on household budgets.
“If these cost pressures persist, consumers are likely to become more cautious, leading to softer demand and greater sensitivity to affordability. As conditions tighten, FLA members will continue to support households navigate a more difficult economic environment through the provision of responsibly provided finance.”
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business | Jan 2026 | %
change on prev. year |
3 months to Jan 2026 |
% change on prev. year | 12 months to Jan 2026 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 1,348 | 13 | 4,228 | 11 | 19,428 | 10 |
| Number of cars | 47,590 | 13 | 148,803 | 14 | 683,460 | 9 |
| Used cars | ||||||
| Value of advances (£m) | 1,928 | -2 | 4,888 | 1 | 21,797 | 3 |
| Number of cars | 123,452 | -5 | 313,222 | -2 | 1,400,060 | -1 |
| Total cars | ||||||
| Value of advances (£m) | 3,276 | 3 | 9,116 | 5 | 41,225 | 6 |
| Number of cars | 171,042 | -1 | 462,025 | 3 | 2,083,520 | 2 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Jan 2026 | %
change on prev. year |
3
months to Jan 2026 |
% change on prev. year | 12 months to Jan 2026 | % change on prev. year |
| New cars | ||||||
| Number of cars | 24,357 | -5 | 82,722 | -2 | 348,282 | -1 |
| Used cars | ||||||
| Number of cars | 4,869 | 19 | 14,088 | 22 | 53,012 | -4 |
Note to editors:
- 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.
