Consumer car finance new grows by 8%

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew by 8% in March 2026 compared with the same month in 2025. The corresponding value of new business was 11% higher over the same period. In Q1 2026, new business volumes grew by 4% compared Q1 2025.

The consumer new car finance market reported new business up 15% by value and 14% by volume in March compared with the same month in 2025. In Q1 2026, new business volumes in this market were 14% higher than in Q1 2025.

The consumer used car finance market reported the value of new business in March 4% higher than in the same month in 2025, while new business volumes grew by 2%.  In Q1 2026, new business volumes in this market were 2% lower than in Q1 2025.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The consumer car finance market made a strong start to 2026 against a challenging backdrop for household finances and reflects the continued importance of finance in supporting demand and maintaining affordability in the car market.

“Growth was led by new car finance, where activity increased sharply and March delivered the strongest volumes since 2019. Finance penetration remained high, with FLA members funding close to 88% of private new car purchases over the past year, underlining how central credit is to consumer access to newer, more efficient vehicles.

“Credit performance remained reassuringly stable even as cost pressures persist for households. While affordability constraints and the pace of electrification continue to shape the outlook, consumer car finance is playing a critical role in smoothing adjustment and sustaining market resilience.”

Cars bought on finance by consumers through the point of sale
New business	Mar 2026	% change on prev. year	3 months to Mar 2026	% change on prev. year	12 months to Mar 2026	% change on prev. year
New cars
Value of advances (£m)	3,623	15	6,105	15	20,065	8
Number of cars	124,403	14	212,695	14	704,216	8
Used cars
Value of advances (£m)	2,097	4	5,867	1	21,886	3
Number of cars	132,588	2	373,610	-2	1,400,496	-1
Total cars
Value of advances (£m)	5,720	11	11,972	7	41,951	6
Number of cars	256,991	8	586,305	4	2,104,712	2
Cars bought on finance by businesses
New business	Mar 2026	% change on prev. year	3 months to Mar 2026	% change on prev. year	12 months to Mar 2026	% change on prev. year
New cars
Number of cars	45,321	16	90,136	0	349,824	-2
Used cars
Number of cars	5,721	31	15,938	30	55,855	2