Consumer car finance fell by 2% in July

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell by 2% in July 2026 compared with the same month in 2025, while the value of new business remained unchanged. In the first seven months of 2026, new business volumes grew by 3% compared with the same period in 2025.

The consumer new car finance market reported new business up 10% by value and volume in July compared with the same month in 2025. In the first seven months of 2026, new business volumes in this market were 16% higher than in the same period in 2025.

The consumer used car finance market reported a fall in new business of 8% by value and 7% by volume in July, compared with the same month in 2025.  In the first seven months of 2026, new business volumes in this market were 3% lower than in the same period in 2025.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “July’s figures highlight a consumer car finance market that remains broadly resilient. While overall volumes were slightly lower than a year ago, the market has continued to grow in 2026, with volumes up 3% in the year to date.

“Strong growth in new car finance suggests that consumers remain willing to make significant purchases where confidence and affordability allow. The increasing availability of more affordable new battery electric vehicles is also likely to be influencing buying decisions, encouraging some consumers to choose a new vehicle rather than a used one and contributing to weaker demand in the used car finance market.

“These trends point to an economy that is continuing to grow, albeit at a modest pace. As we look ahead to the Autumn Budget, the Government should focus on measures that strengthen consumer confidence, support investment and will help the government achieve its objective on net zero. A stable policy environment that makes it easier for households and businesses to plan and invest will help support sustainable growth across the economy.”

Cars bought on finance by consumers through the point of sale
New business	Jul 2026	% change on prev. year	3 months to Jul 2026	% change on prev. year	12 months to Jul 2026	% change on prev. year
New cars
Value of advances (£m)	1,549	10	5,218	16	21,143	14
Number of cars	54,313	10	181,606	16	740,677	14
Used cars
Value of advances (£m)	1,819	-8	5,411	-4	21,628	0
Number of cars	117,156	-7	347,225	-4	1,382,326	-2
Total cars
Value of advances (£m)	3,368	0	10,629	5	42,771	7
Number of cars	171,469	-2	528,831	2	2,123,003	3
Cars bought on finance by businesses
New business	Jul 2026	% change on prev. year	3 months to Jul 2026	% change on prev. year	12 months to Jul 2026	% change on prev. year
New cars
Number of cars	31,261	6	97,483	17	372,132	8
Used cars
Number of cars	5,502	20	15,688	16	59,544	21