Consumer car finance market grows 5% in June 2025

New figures released today by the Finance & Leasing Association (FLA) reveal that consumer car finance new business volumes rose by 5% in June 2025, compared to the same month in 2024. The value of new business also saw a significant boost, climbing 9% year-on-year.

The latest data highlights a welcome upturn for the sector, marking only the second month of growth in 2025 so far. Across the first half of the year (H1 2025), total new business volumes were 1% higher than the same period in 2024.

Breaking the figures down, both the new and used car finance markets reported identical volume growth of 5% in June. However, the underlying trends show some variation.

In the consumer new car finance market, the value of new business in June was 8% higher than the previous year, while volumes matched the overall 5% growth. For H1 2025, volumes in this segment were up 7% year-on-year, underlining steady demand for new vehicles.

The consumer used car finance market also saw strong value growth in June, rising 9% year-on-year, with volumes again up by 5%. But over the first half of 2025, used car finance volumes were 2% lower than in the same period of 2024, suggesting a more mixed picture in the second-hand market.

“The point-of-sale consumer car finance market grew for only the second time in 2025 so far, with the same rate of new business volumes growth reported by both the new and used car finance markets. Despite the challenging economic environment, new business in the consumer car finance market grew 6% by value in H1 2025, while volumes were 1% higher at 1.1 million cars.”

Kilkelly also highlighted the sector’s importance to the wider economy: “The consumer car finance market forms the largest part of the UK consumer credit market and was second only to the mortgage market in terms of total outstanding lending to individuals at the end of June 2025. It currently helps more than 6 million consumers fund car purchases across all regions of the UK.”

Table 1: Cars bought on finance by consumers through the point of sale
New business	Jun 2025	%  change on prev. year	3 months to Jun 2025	% change on prev. year	12 months to Jun 2025	% change on prev. year
New cars
Value of advances (£m)	1,677	8	4,279	1	18,528	10
Number of cars	57,755	5	150,756	-2	648,742	5
Used cars
Value of advances (£m)	1,811	9	5,576	4	21,478	0
Number of cars	116,700	5	358,530	-1	1,411,211	-2
Total cars
Value of advances (£m)	3,488	9	9,856	3	40,006	4
Number of cars	174,455	5	509,286	-1	2,059,953	0
Table 2: Cars bought on finance by businesses
New business	Jun 2025	%  change on prev. year	3 months to Jun 2025	% change on prev. year	12 months to Jun 2025	% change on prev. year
New cars
Number of cars	27,817	-1	90,503	-3	355,969	-5
Used cars
Number of cars	4,456	-18	12,724	-11	52,182	-14