New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell by 2% in July 2026 compared with the same month in 2025, while the value of new business remained unchanged. In the first seven 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 10% by value and volume in July compared with the same month in 2025. In the first seven 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 of 8% by value and 7% by volume in July, compared with the same month in 2025. In the first seven 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:
“July’s figures highlight a consumer car finance market that remains broadly resilient. While overall volumes were slightly lower than a year ago, the market has continued to grow in 2026, with volumes up 3% in the year to date.
“Strong growth in new car finance suggests that consumers remain willing to make significant purchases where confidence and affordability allow. The increasing availability of more affordable new battery electric vehicles is also likely to be influencing buying decisions, encouraging some consumers to choose a new vehicle rather than a used one and contributing to weaker demand in the used car finance market.
“These trends point to an economy that is continuing to grow, albeit at a modest pace. As we look ahead to the Autumn Budget, the Government should focus on measures that strengthen consumer confidence, support investment and will help the government achieve its objective on net zero. A stable policy environment that makes it easier for households and businesses to plan and invest will help support sustainable growth across the economy.”
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business | Jul 2026 | %
change on prev. year |
3 months to Jul 2026 |
% change on prev. year | 12 months to Jul 2026 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 1,549 | 10 | 5,218 | 16 | 21,143 | 14 |
| Number of cars | 54,313 | 10 | 181,606 | 16 | 740,677 | 14 |
| Used cars | ||||||
| Value of advances (£m) | 1,819 | -8 | 5,411 | -4 | 21,628 | 0 |
| Number of cars | 117,156 | -7 | 347,225 | -4 | 1,382,326 | -2 |
| Total cars | ||||||
| Value of advances (£m) | 3,368 | 0 | 10,629 | 5 | 42,771 | 7 |
| Number of cars | 171,469 | -2 | 528,831 | 2 | 2,123,003 | 3 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Jul 2026 | %
change on prev. year |
3
months to Jul 2026 |
% change on prev. year | 12 months to Jul 2026 | % change on prev. year |
| New cars | ||||||
| Number of cars | 31,261 | 6 | 97,483 | 17 | 372,132 | 8 |
| Used cars | ||||||
| Number of cars | 5,502 | 20 | 15,688 | 16 | 59,544 | 21 |
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 2025. £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.
