Consumer car finance grows by 7%

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew by 7% in June 2026 compared with the same month in 2025. The corresponding value of new business was 11% higher over the same period. In the first half of 2026, new business volumes grew by 4% compared with the same period in 2025.

The consumer new car finance market reported new business up 21% by value and 21% by volume in June compared with the same month in 2025. In the first half of 2026, new business volumes in this market were 17% higher than in the same period in 2025.

The consumer used car finance market reported new business up 1% by value in June while volumes held steady, compared with the same month in 2025.  In the first half of 2026, new business volumes in this market were 2% lower than in the same period in 2025.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “June’s figures cap a strong first half year for the consumer car finance market, driven by a buoyant new car market and growing demand for electric vehicles. Finance is playing a vital role in supporting household spending and the transition to cleaner transport, with FLA members funding almost nine in ten private new car purchases and almost all private new BEV purchases.

“The Government’s ZEV Mandate review is a welcome and important step. We hope it will deliver on the Government’s commitment to a business-friendly and realistic policy framework that supports confidence among manufacturers and investors. However, long-term success will depend on the strength of the entire EV market, not just new vehicle sales. As increasing volumes of electric vehicles enter the used market over the coming years, targeted measures to support consumer demand will be essential to ensure a healthy, sustainable and predictable balance between new and used vehicle markets.”

Table 1: Cars bought on finance by consumers through the point of sale
New business	Jun 2026	%  change on prev. year	3 months to Jun 2026	% change on prev. year	12 months to Jun 2026	% change on prev. year
New cars
Value of advances (£m)	2,041	21	5,199	21	21,006	13
Number of cars	70,614	21	180,674	20	735,587	13
Used cars
Value of advances (£m)	1,829	1	5,462	-2	21,776	1
Number of cars	116,690	0	348,352	-3	1,390,685	-1
Total cars
Value of advances (£m)	3,870	11	10,661	8	42,782	7
Number of cars	187,304	7	529,026	4	2,126,272	3
Table 2: Cars bought on finance by businesses
New business	Jun 2026	%  change on prev. year	3  months to Jun 2026	% change on prev. year	12 months to Jun 2026	% change on prev. year
New cars
Number of cars	35,192	26	101,259	26	369,423	8
Used cars
Number of cars	5,273	18	15,590	22	58,643	11