Consumer car finance new business grows by 1%

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew in July 2025 by 1% compared with the same month in 2024. The corresponding value of new business grew by 4% over the same period. In the seven months to July 2025, new business volumes were also 1% higher than in the same period in 2024.

The consumer new car finance market reported new business by value in July 2% higher than in the same month in 2024, while new business volumes grew by 1%.  In the seven months to July 2025, new business volumes in this market were 7% higher than in the same period in 2024.

The consumer used car finance market reported a 6% increase in the value of new business in July compared to the same month in 2024, while new business volumes remained steady.  In the seven months to July 2025, new business volumes in this market were 2% lower than in the same period in 2024.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The consumer car finance market reported a second consecutive month of growth in July, with 15.5% of volumes in the consumer new car finance market supporting BEV purchases. The proportion of new business volumes for used BEV purchases continued to grow from a low base reaching 8.0% in July.

“Consumer confidence has shown signs of improving following a further cut in interest rates by the Bank of England. Our latest research suggests that the consumer car finance market will see the value of new business increase by 6% in 2025 as a whole, with growth of 8% in the new car finance market and 4% growth in the used car finance market.”

Cars bought on finance by consumers through the point of sale
New business	Jul 2025	% change on prev. year	3 months to Jul 2025	% change on prev. year	12 months to Jul 2025	% change on prev. year
New cars
Value of advances (£m)	1,412	2	4,481	4	18,564	10
Number of cars	49,223	1	156,230	2	649,730	5
Used cars
Value of advances (£m)	1,971	6	5,638	6	21,581	1
Number of cars	125,924	0	362,075	1	1,411,385	-2
Total cars
Value of advances (£m)	3,383	4	10,119	5	40,145	5
Number of cars	175,147	1	518,305	1	2,061,115	0
Cars bought on finance by businesses
New business	Jul 2025	% change on prev. year	3 months to Jul 2025	% change on prev. year	12 months to Jul 2025	% change on prev. year
New cars
Number of cars	29,586	8	89,074	3	359,824	-4
Used cars
Number of cars	4,589	-43	13,575	-24	49,255	-21