Consumer car finance grew by 2% in 2025

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business grew 15% by value and 12% by volume in December 2025, compared with the same month in 2024. In 2025 as a whole, new business volumes grew by 2% compared with 2024.

The consumer new car finance market reported new business up 22% by value and 27% by volume in December compared with the same month in 2024. In 2025, overall, new business volumes in this market were 8% higher than in 2024.

The consumer used car finance market reported the value of new business 8% higher in December than in the same month in 2024, while new business volumes grew by 5%.  In 2025 as a whole, new business volumes in this market were 1% lower than in 2024.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The consumer car finance market ended 2025 on a strong note with new business volumes growing at their fastest pace for almost four years in December. For the first time since 2021, the new car finance market recorded annual growth in new business volumes. The used car finance market remained resilient with annual new business volumes only slightly lower than in 2024.

“The industry continues to play a vital role in enabling more than six million consumers to access the vehicles they need, whether new or used. This year, easing inflation and the prospect of lower interest rates should further support affordability, helping more households manage essential mobility.”

Cars bought on finance by consumers through the point of sale
New business	Dec 2025	% change on prev. year	3 months to Dec 2025	% change on prev. year	12 months to Dec 2025	% change on prev. year
New cars
Value of advances (£m)	1,426	22	4,386	11	19,278	9
Number of cars	49,737	27	155,096	14	677,840	8
Used cars
Value of advances (£m)	1,391	8	4,826	4	21,842	3
Number of cars	88,559	5	308,405	0	1,406,915	-1
Total cars
Value of advances (£m)	2,817	15	9,212	7	41,119	6
Number of cars	138,296	12	463,501	4	2,084,755	2
Cars bought on finance by businesses
New business	Dec 2025	% change on prev. year	3 months to Dec 2025	% change on prev. year	12 months to Dec 2025	% change on prev. year
New cars
Number of cars	28,798	-1	91,575	0	349,592	-1
Used cars
Number of cars	4,322	24	14,209	21	52,221	-7