Consumer car finance fell by 1% in January 2026

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell 1% in January 2026 compared with the same month in 2025. The corresponding value of new business was 3% higher over the same period. In the twelve months to January 2026, new business volumes grew by 2% compared with the same period in 2025.

The consumer new car finance market reported new business up 13% by both value and volume in January compared with the same month in 2025. In the twelve months to January 2026, new business volumes in this market were 9% higher than in the same period in 2025.

The consumer used car finance market reported the value of new business 2% lower in January than in the same month in 2025, while new business volumes fell by 5%.  In the twelve months to January 2026, new business volumes in this market were 1% lower than in the same period in 2025.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The consumer new car finance market made an encouraging start to 2026, carrying forward the momentum built at the end of last year. While the used car finance market began the year more slowly, annual new business volumes remained broadly stable, highlighting the sector’s underlying resilience.

“However, the outlook has become more challenging. Rising tensions in the Middle East are pushing up global energy costs, and inflation is now expected to increase rather than ease, delaying any move towards lower interest rates and placing renewed pressure on household budgets.

“If these cost pressures persist, consumers are likely to become more cautious, leading to softer demand and greater sensitivity to affordability. As conditions tighten, FLA members will continue to support households navigate a more difficult economic environment through the provision of responsibly provided finance.”

Cars bought on finance by consumers through the point of sale
New business	Jan 2026	% change on prev. year	3 months to Jan 2026	% change on prev. year	12 months to Jan 2026	% change on prev. year
New cars
Value of advances (£m)	1,348	13	4,228	11	19,428	10
Number of cars	47,590	13	148,803	14	683,460	9
Used cars
Value of advances (£m)	1,928	-2	4,888	1	21,797	3
Number of cars	123,452	-5	313,222	-2	1,400,060	-1
Total cars
Value of advances (£m)	3,276	3	9,116	5	41,225	6
Number of cars	171,042	-1	462,025	3	2,083,520	2
Cars bought on finance by businesses
New business	Jan 2026	% change on prev. year	3 months to Jan 2026	% change on prev. year	12 months to Jan 2026	% change on prev. year
New cars
Number of cars	24,357	-5	82,722	-2	348,282	-1
Used cars
Number of cars	4,869	19	14,088	22	53,012	-4