Consumer car finance volumes rise 3% in April as new car market drives growth

New business volumes in the UK consumer car finance market grew by 3% in April 2026 compared with the same month last year, according to the latest figures from the Finance & Leasing Association (FLA).

The value of new business increased by 9% over the same period, reflecting continued demand for vehicle finance despite ongoing economic pressures.

Across the first four months of 2026, consumer car finance new business volumes were 4% higher than in the corresponding period of 2025.

Growth was driven by a strong performance in the new car finance market. New business volumes in the sector increased by 21% in April compared with the same month last year, while the value of new business rose by 25%.

Year-to-date, new car finance volumes have grown by 16% compared with the first four months of 2025, underlining the continued recovery and strength of the new vehicle market.

In contrast, the used car finance market remained under pressure. The value of new business in April was 2% lower than a year earlier, while new business volumes fell by 3%. Over the first four months of the year, used car finance volumes were down 2% compared with the same period in 2025.

“In the near term, the backdrop remains challenging, with cost pressures, weak confidence and higher interest rates weighing on activity. However, the recent US-Iran agreement marks an important turning point, offering greater stability in energy markets and improving the medium-term outlook for growth and inflation.

“Looking ahead, there are clear opportunities for the motor finance market, particularly in the continued expansion of new and used electric vehicle markets. FLA members will play a central role in supporting this transition, enabling access to newer, more efficient vehicles and supporting mobility across the UK.”

The figures suggest that while affordability pressures continue to impact parts of the market, consumers remain willing to finance new vehicle purchases, supported by an expanding range of models and growing interest in electric vehicles. The divergence between the new and used car sectors highlights the different challenges facing consumers as they navigate higher borrowing costs and changing vehicle preferences.

With stability returning to inflation and energy markets, the motor finance industry will be hoping that improving economic conditions help support demand through the remainder of 2026.

Table 1: Cars bought on finance by consumers through the point of sale
New business	Apr 2026	% change on prev. year	3 months to Apr 2026	% change on prev. year	12 months to Apr 2026	% change on prev. year
New cars
Value of advances (£m)	1,530	25	6,321	18	20,406	11
Number of cars	53,381	21	220,374	17	715,301	11
Used cars
Value of advances (£m)	1,871	-2	5,811	1	21,852	3
Number of cars	118,317	-3	368,546	-1	1,396,801	-1
Total cars
Value of advances (£m)	3,401	9	12,132	9	42,258	6
Number of cars	171,698	3	588,920	5	2,112,102	3
Table 2: Cars bought on finance by businesses
New business	Apr 2026	% change on prev. year	3 months to Apr 2026	% change on prev. year	12 months to Apr 2026	% change on prev. year
New cars
Number of cars	35,889	35	100,397	10	357,729	3
Used cars
Number of cars	5,375	41	16,425	36	57,378	7