Consumer car finance new business fell by 3% in January

Consumer car finance new business volumes fell in January 2025 by 3% compared with the same month in 2024, according to new figures released today by the Finance & Leasing Association (FLA). The corresponding value of new business grew by 4% over the same period. In the twelve months to January 2025, new business was 2% lower by volume compared with the same period in 2024.

The consumer new car finance market reported new business by value in January 14% higher than in the same month in 2024, while new business volumes grew by 9%. In the twelve months to January 2025, new business volumes in this market were 1% lower than in the same period in 2024.

The consumer used car finance market reported a fall in the value of new business in January of 2% compared with the same month in 2024, while new business volumes fell by 6%. In the twelve months to January 2025, new business volumes in this market were 2% lower than in the same period in 2024.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The consumer new car finance market reported a third consecutive month of new business growth in January.

“By contrast, the consumer used car finance market reported a further single-digit contraction in new business over the same period. Both markets saw growth in average advances compared with January 2024.

“Our latest research suggests the value of new business provided by the consumer car finance market will grow by 1% in 2025, with growth of 5% in the consumer new car finance market offset by a 2% fall in the consumer used car finance market.”

Table 1: Cars bought on finance by consumers through the point of sale
New business	Jan 2025	% change on prev. year	3 months to Jan 2025	% change on prev. year	12 months to Jan 2025	% change on prev. year
New cars
Value of advances (£m)	1,262	14	3,963	14	17,863	7
Number of cars	43,660	9	133,948	7	630,828	-1
Used cars
Value of advances (£m)	1,985	-2	4,867	-2	21,234	-4
Number of cars	130,592	-6	319,012	-5	1,429,909	-2
Total cars
Value of advances (£m)	3,247	4	8,830	4	39,097	1
Number of cars	174,252	-3	452,960	-2	2,060,737	-2

Table 2: Cars bought on finance by businesses
New business	Jan 2025	% change on prev. year	3 months to Jan 2025	% change on prev. year	12 months to Jan 2025	% change on prev. year
New cars
Number of cars	25,601	-6	84,390	-10	348,466	-7
Used cars
Number of cars	4,056	-19	11,375	-27	54,517	-11