Consumer car finance new business rises 1% in July

New figures released today by the Finance & Leasing Association (FLA) reveal that consumer car finance new business volumes rose by 1% in July 2025 compared with the same month in 2024. The value of new business recorded a stronger increase, up 4% year-on-year.

Across the first seven months of 2025, total new business volumes were also 1% higher than in the same period last year, indicating steady but modest growth in the market.

The consumer new car finance market recorded a 2% rise in the value of new business in July, while volumes increased by 1% compared with July 2024. Over the seven months to July, new business volumes in this segment grew by 7% year-on-year, highlighting sustained demand for new vehicles despite ongoing economic uncertainty.

In contrast, the consumer used car finance market saw 6% growth in the value of new business in July but volumes remained flat compared with the same month last year. Over the seven-month period, however, used car finance volumes fell by 2%, suggesting a slight cooling in consumer appetite for financing second-hand vehicles.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The consumer car finance market reported a second consecutive month of growth in July, with 15.5% of volumes in the consumer new car finance market supporting battery electric vehicle (BEV) purchases.

“The proportion of new business volumes for used BEV purchases continued to grow from a low base, reaching 8.0% in July.

“Consumer confidence has shown signs of improving following a further cut in interest rates by the Bank of England. Our latest research suggests that the consumer car finance market will see the value of new business increase by 6% in 2025 as a whole, with 8% growth in the new car finance market and 4% growth in the used car finance market.”

Table 1: Cars bought on finance by consumers through the point of sale
New business	Jul 2025	% change on prev. year	3 months to Jul 2025	% change on prev. year	12 months to Jul 2025	% change on prev. year
New cars
Value of advances (£m)	1,412	2	4,481	4	18,564	10
Number of cars	49,223	1	156,230	2	649,730	5
Used cars
Value of advances (£m)	1,971	6	5,638	6	21,581	1
Number of cars	125,924	0	362,075	1	1,411,385	-2
Total cars
Value of advances (£m)	3,383	4	10,119	5	40,145	5
Number of cars	175,147	1	518,305	1	2,061,115	0

Table 2: Cars bought on finance by businesses
New business	Jul 2025	% change on prev. year	3 months to Jul 2025	% change on prev. year	12 months to Jul 2025	% change on prev. year
New cars
Number of cars	29,586	8	89,074	3	359,824	-4
Used cars
Number of cars	4,589	-43	13,575	-24	49,255	-21