Consumer car finance new business volumes grow by 1%

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

The consumer new car finance market reported new business up 21% by value and 22% by volume in August compared with the same month in 2025. In the eight months to August 2026, new business volumes in this market were 17% higher than in the same period in 2025.

The consumer used car finance market reported a fall in new business of 6% by both value and volume in August, compared with the same month in 2025.  In the eight months to August 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 “Consumer car finance continued to perform strongly in August, reflecting ongoing growth in the new car market. FLA members financed 89% of private new car sales, demonstrating the central role of finance in helping consumers access affordable transport and spread the cost of vehicle ownership.

“This week’s Budget provides an opportunity to support continued investment in newer and lower-emission vehicles. A clear and predictable approach to vehicle taxation, including incentives that encourage the adoption of used electric vehicles, would give consumers greater confidence to make long-term purchasing decisions.

“At a time when economic uncertainty remains elevated, policies that support consumer confidence and encourage investment are likely to deliver greater benefits for growth than measures that increase the cost of ownership or create further uncertainty.”

Cars bought on finance by consumers through the point of sale
New business	Aug 2026	% change on prev. year	3 months to Aug 2026	% change on prev. year	12 months to Aug 2026	% change on prev. year
New cars
Value of advances (£m)	1,172	21	4,762	17	21,345	15
Number of cars	42,040	22	166,967	18	748,287	15
Used cars
Value of advances (£m)	1,650	-6	5,301	-4	21,519	0
Number of cars	107,303	-6	341,366	-4	1,375,849	-2
Total cars
Value of advances (£m)	2,822	3	10,064	5	42,864	7
Number of cars	149,343	1	508,333	2	2,124,136	3
Cars bought on finance by businesses
New business	Aug 2026	% change on prev. year	3 months to Aug 2026	% change on prev. year	12 months to Aug 2026	% change on prev. year
New cars
Number of cars	23,561	6	91,178	14	373,856	8
Used cars
Number of cars	4,748	23	15,525	20	60,459	22