Consumer car finance new business grows 1% in May

Consumer car finance new business volumes increased by 1% in May 2026 compared with the same month last year, as strong demand for new vehicles continued to offset weaker activity in the used car market, according to the latest figures from the Finance & Leasing Association (FLA).

The value of new business rose by 5% year-on-year in May, while new business volumes for the first five months of 2026 were 3% higher than the corresponding period in 2025.

The new car finance market continued to outperform, with new business volumes rising 16% in May and the value of finance increasing by 18% compared with May 2025. Over the first five months of the year, new car finance volumes were also 16% ahead of the same period last year.

In contrast, the used car finance market remained under pressure. New business volumes and value both fell by 5% in May compared with a year earlier. For the year to date, used car finance volumes were 3% lower than in the first five months of 2025.

The FLA said the figures reflected continued resilience in consumer demand despite wider economic uncertainty.

“Demand for new car finance remained robust, with a quarter of all new business volumes financing battery electric vehicles. The used car finance market continued to perform relatively well despite ongoing pressure on household budgets and a subdued economic environment.”

She added: “Looking ahead, uncertainty linked to developments in the Middle East continues to pose risks through its potential impact on energy prices, inflation, interest rates and consumer confidence. Despite regulatory and economic challenges, FLA members remain at the forefront of the UK’s transition to zero-emission motoring and are well placed to support consumers’ access to affordable and sustainable mobility.”

The latest figures indicate that demand for new vehicle finance continues to benefit from growing adoption of electric vehicles, while affordability pressures continue to weigh on activity in the used car market.

Table 1: Cars bought on finance by consumers through the point of sale
New business	May 2026	%  change on prev. year	3 months to May 2026	% change on prev. year	12 months to May 2026	% change on prev. year
New cars
Value of advances (£m)	1,628	18	6,815	19	20,654	12
Number of cars	56,679	16	236,351	17	723,163	12
Used cars
Value of advances (£m)	1,761	-5	5,730	-1	21,754	2
Number of cars	113,327	-5	364,303	-2	1,390,381	-1
Total cars
Value of advances (£m)	3,389	5	12,545	9	42,407	7
Number of cars	170,006	1	600,654	5	2,113,544	3
Table 2: Cars bought on finance by businesses
New business	May 2026	%  change on prev. year	3 months to May 2026	% change on prev. year	12 months to May 2026	% change on prev. year
New cars
Number of cars	30,129	16	110,157	20	362,149	5
Used cars
Number of cars	4,925	9	16,031	26	57,830	7