New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business grew 15% by value and 12% by volume in December 2025, compared with the same month in 2024. In 2025 as a whole, new business volumes grew by 2% compared with 2024.
The consumer new car finance market reported new business up 22% by value and 27% by volume in December compared with the same month in 2024. In 2025 overall, new business volumes in this market were 8% higher than in 2024.
The consumer used car finance market reported the value of new business 8% higher in December than in the same month in 2024, while new business volumes grew by 5%. In 2025 as a whole, new business volumes in this market were 1% lower than in 2024.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The consumer car finance market ended 2025 on a strong note with new business volumes growing at their fastest pace for almost four years in December. For the first time since 2021, the new car finance market recorded annual growth in new business volumes. The used car finance market remained resilient with annual new business volumes only slightly lower than in 2024.
“The industry continues to play a vital role in enabling more than six million consumers to access the vehicles they need, whether new or used. This year, easing inflation and the prospect of lower interest rates should further support affordability, helping more households manage essential mobility.”
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business | Dec 2025 | %
change on prev. year |
3 months to Dec 2025 |
% change on prev. year | 12 months to Dec 2025 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 1,426 | 22 | 4,386 | 11 | 19,278 | 9 |
| Number of cars | 49,737 | 27 | 155,096 | 14 | 677,840 | 8 |
| Used cars | ||||||
| Value of advances (£m) | 1,391 | 8 | 4,826 | 4 | 21,842 | 3 |
| Number of cars | 88,559 | 5 | 308,405 | 0 | 1,406,915 | -1 |
| Total cars | ||||||
| Value of advances (£m) | 2,817 | 15 | 9,212 | 7 | 41,119 | 6 |
| Number of cars | 138,296 | 12 | 463,501 | 4 | 2,084,755 | 2 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Dec 2025 | %
change on prev. year |
3
months to Dec 2025 |
% change on prev. year | 12 months to Dec 2025 | % change on prev. year |
| New cars | ||||||
| Number of cars | 28,798 | -1 | 91,575 | 0 | 349,592 | -1 |
| Used cars | ||||||
| Number of cars | 4,322 | 24 | 14,209 | 21 | 52,221 | -7 |
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.
