New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew in June 2025 by 5% compared with the same month in 2024. The corresponding value of new business grew by 9% over the same period. In the first half of 2025 (H1), new business volumes were 1% higher than in the same period in 2024.
The consumer new car finance market reported new business by value in June 8% higher than in the same month in 2024, while new business volumes grew by 5%. In H1 2025, new business volumes in this market were 7% higher than in H1 2024.
The consumer used car finance market reported the value of new business in June 9% higher than in the same month in 2024, while new business volumes grew by 5%. In H1 2025, new business volumes in this market were 2% lower than in H1 2024.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The point-of-sale consumer car finance market grew for only the second time in 2025 so far with the same rate of new business volumes growth reported by both the new and used car finance markets. Despite the challenging economic environment, new business in the consumer car finance market grew 6% by value in H1 2025, while volumes were 1% higher at 1.1 million cars.
“The consumer car finance market forms the largest part of the UK consumer credit market and was second only to the mortgage market in terms of total outstanding lending to individuals at the end of June 2025. It currently helps more than 6 million consumers fund car purchases across all regions of the UK.
“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 | Jun 2025 | %
change on prev. year |
3 months to Jun 2025 |
% change on prev. year | 12 months to Jun 2025 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 1,677 | 8 | 4,279 | 1 | 18,528 | 10 |
| Number of cars | 57,755 | 5 | 150,756 | -2 | 648,742 | 5 |
| Used cars | ||||||
| Value of advances (£m) | 1,811 | 9 | 5,576 | 4 | 21,478 | 0 |
| Number of cars | 116,700 | 5 | 358,530 | -1 | 1,411,211 | -2 |
| Total cars | ||||||
| Value of advances (£m) | 3,488 | 9 | 9,856 | 3 | 40,006 | 4 |
| Number of cars | 174,455 | 5 | 509,286 | -1 | 2,059,953 | 0 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Jun 2025 | %
change on prev. year |
3
months to Jun 2025 |
% change on prev. year | 12 months to Jun 2025 | % change on prev. year |
| New cars | ||||||
| Number of cars | 27,817 | -1 | 90,503 | -3 | 355,969 | -5 |
| Used cars | ||||||
| Number of cars | 4,456 | -18 | 12,724 | -11 | 52,182 | -14 |
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.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
