Consumer car finance grows by 1%

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew by 1% in May 2026 compared with the same month in 2025. The corresponding value of new business was 5% higher over the same period. In the first five 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 18% by value and 16% by volume in May compared with the same month in 2025. In the first five 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 in May by both value and volume of 5% compared with the same month in 2025.  In the first five 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 “The consumer car finance market delivered another resilient performance in May. Demand for new car finance remained robust, with a quarter of all new business volumes financing battery electric vehicles. The used car finance market continued to perform relatively well despite ongoing pressure on household budgets and a subdued economic environment.

“Looking ahead, uncertainty linked to developments in the Middle East continues to pose risks through its potential impact on energy prices, inflation, interest rates and consumer confidence. Despite regulatory and economic challenges, FLA members remain at the forefront of the UK’s transition to zero-emission motoring and are well placed to support consumers’ access to affordable and sustainable mobility.”

Cars bought on finance by consumers through the point of sale
New business	May 2026	% change on prev. year	3 months to May 2026	% change on prev. year	12 months to May 2026	% change on prev. year
New cars
Value of advances (£m)	1,628	18	6,815	19	20,654	12
Number of cars	56,679	16	236,351	17	723,163	12
Used cars
Value of advances (£m)	1,761	-5	5,730	-1	21,754	2
Number of cars	113,327	-5	364,303	-2	1,390,381	-1
Total cars
Value of advances (£m)	3,389	5	12,545	9	42,407	7
Number of cars	170,006	1	600,654	5	2,113,544	3
Cars bought on finance by businesses
New business	May 2026	% change on prev. year	3 months to May 2026	% change on prev. year	12 months to May 2026	% change on prev. year
New cars
Number of cars	30,129	16	110,157	20	362,149	5
Used cars
Number of cars	4,925	9	16,031	26	57,830	7