Consumer car finance volumes dip 2% in July as new car market strengthens

Consumer car finance new business volumes fell by 2% in July 2026 compared with the same month last year, although growth in the new car finance market remained strong, according to the latest figures from the Finance & Leasing Association (FLA).

The value of total consumer car finance new business was unchanged year-on-year in July, while volumes declined by 2%.

Despite the monthly fall, the market has continued to record growth across 2026, with new business volumes in the first seven months of the year 3% higher than during the same period in 2025.

Performance continued to diverge between the new and used car finance markets.

The consumer new car finance market recorded a 10% increase in both the value and volume of new business in July compared with the same month last year.

Growth has been particularly strong during 2026 so far, with new business volumes in the new car finance market 16% higher in the first seven months of the year than during the equivalent period in 2025.

In contrast, the consumer used car finance market reported an 8% fall in the value of new business and a 7% decline in volumes in July compared with July 2025.

Across the first seven months of 2026, used car finance new business volumes were 3% lower year-on-year.

“July’s figures highlight a consumer car finance market that remains broadly resilient. While overall volumes were slightly lower than a year ago, the market has continued to grow in 2026, with volumes up 3% in the year to date.

“Strong growth in new car finance suggests that consumers remain willing to make significant purchases where confidence and affordability allow. The increasing availability of more affordable new battery electric vehicles is also likely to be influencing buying decisions, encouraging some consumers to choose a new vehicle rather than a used one and contributing to weaker demand in the used car finance market.”

Kilkelly said the figures were consistent with an economy continuing to expand at a modest pace and called on the Government to use the forthcoming Autumn Budget to strengthen confidence and investment.

“These trends point to an economy that is continuing to grow, albeit at a modest pace. As we look ahead to the Autumn Budget, the Government should focus on measures that strengthen consumer confidence, support investment and will help the government achieve its objective on net zero.

“A stable policy environment that makes it easier for households and businesses to plan and invest will help support sustainable growth across the economy.”

Table 1: Cars bought on finance by consumers through the point of sale
New business	Jul 2026	%  change on prev. year	3 months to Jul 2026	% change on prev. year	12 months to Jul 2026	% change on prev. year
New cars
Value of advances (£m)	1,549	10	5,218	16	21,143	14
Number of cars	54,313	10	181,606	16	740,677	14
Used cars
Value of advances (£m)	1,819	-8	5,411	-4	21,628	0
Number of cars	117,156	-7	347,225	-4	1,382,326	-2
Total cars
Value of advances (£m)	3,368	0	10,629	5	42,771	7
Number of cars	171,469	-2	528,831	2	2,123,003	3
Table 2: Cars bought on finance by businesses
New business	Jul 2026	%  change on prev. year	3 months to Jul 2026	% change on prev. year	12 months to Jul 2026	% change on prev. year
New cars
Number of cars	31,261	6	97,483	17	372,132	8
Used cars
Number of cars	5,502	20	15,688	16	59,544	21