Credit, Collections & Insolvency News
New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in April 2025 by 5% compared with the same month in 2024. The corresponding value of new business fell by 2% over the same period. In the first four months of 2025, new business was 1% higher by volume compared with the same period in 2024.
The consumer new car finance market reported new business by value in April 7% lower than in the same month in 2024, while new business volumes fell by 8%. In the first four months of 2025, new business volumes in this market were 11% higher than in the same period in 2024.
The consumer used car finance market reported the value of new business in April 4% lower than in the same month in 2024, while new business volumes grew by 2%. In the first four months of 2025, new business volumes in this market were 3% lower than in the same period in 2024.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “April saw the consumer car finance market report its first fall in new business since October 2024 as higher vehicle excise duties took effect, and consumer spending power was hit by higher energy, telephone and water bills.
“The FLA’s Q2 2025 industry outlook survey results showed that three-quarters of motor finance respondents expected some increase in new business over the next year despite subdued consumer and business confidence. The prospect of further cuts in interest rates, strong consumer savings, and the potential for growth as the UK transitions to greener assets should contribute to single-digit new business growth by value over the next 12 months.”
| Cars bought on finance by consumers through the point of sale | ||||||
| New business | Apr 2025 | %
change on prev. year |
3 months to Apr 2025 |
% change on prev. year | 12 months to Apr 2025 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 1,222 | -7 | 5,344 | 15 | 18,408 | 9 |
| Number of cars | 44,184 | -8 | 188,666 | 12 | 647,307 | 3 |
| Used cars | ||||||
| Value of advances (£m) | 1,910 | 2 | 5,760 | 3 | 21,289 | -3 |
| Number of cars | 122,418 | -4 | 372,140 | -2 | 1,408,665 | -3 |
| Total cars | ||||||
| Value of advances (£m) | 3,132 | -2 | 11,104 | 9 | 39,696 | 2 |
| Number of cars | 166,602 | -5 | 560,806 | 2 | 2,055,972 | -1 |
| Cars bought on finance by businesses | ||||||
| New business | Apr 2025 | %
change on prev. year |
3
months to Apr 2025 |
% change on prev. year | 12 months to Apr 2025 | % change on prev. year |
| New cars | ||||||
| Number of cars | 31,145 | -10 | 99,247 | 7 | 355,093 | -7 |
| Used cars | ||||||
| Number of cars | 6,205 | 32 | 14,307 | 6 | 55,318 | -11 |