Consumer car finance new business grew by 8% in March

Consumer car finance new business volumes increased by 8% in March 2026 compared with the same month last year, according to the latest figures released by the Finance & Leasing Association.

The value of new business grew even faster, rising 11% year-on-year, while overall new business volumes for Q1 2026 were 4% higher than in the first quarter of 2025.

Growth was driven primarily by strong demand in the new car finance market. Consumer new car finance recorded a 15% increase in value and a 14% rise in volumes in March compared with the same month last year. Across the first quarter, new car finance volumes were also up 14%.

The used car finance market saw more modest growth, with the value of new business increasing by 4% in March and volumes rising by 2%. However, Q1 2026 used car finance volumes remained 2% below the same period in 2025.

“The consumer car finance market made a strong start to 2026 against a challenging backdrop for household finances and reflects the continued importance of finance in supporting demand and maintaining affordability in the car market,” she said.

Kilkelly highlighted particularly strong growth in the new car market, with March delivering the highest volumes seen since before the pandemic.

“Growth was led by new car finance, where activity increased sharply and March delivered the strongest volumes since 2019,” she said.

“Finance penetration remained high, with FLA members funding close to 88% of private new car purchases over the past year, underlining how central credit is to consumer access to newer, more efficient vehicles.”

She added that credit quality across the market remained stable despite ongoing cost pressures for consumers.

“Credit performance remained reassuringly stable even as cost pressures persist for households,” Kilkelly said. “While affordability constraints and the pace of electrification continue to shape the outlook, consumer car finance is playing a critical role in smoothing adjustment and sustaining market resilience.”

Table 1: Cars bought on finance by consumers through the point of sale
New business	Mar 2026	%  change on prev. year	3 months to Mar 2026	% change on prev. year	12 months to Mar 2026	% change on prev. year
New cars
Value of advances (£m)	3,623	15	6,105	15	20,065	8
Number of cars	124,403	14	212,695	14	704,216	8
Used cars
Value of advances (£m)	2,097	4	5,867	1	21,886	3
Number of cars	132,588	2	373,610	-2	1,400,496	-1
Total cars
Value of advances (£m)	5,720	11	11,972	7	41,951	6
Number of cars	256,991	8	586,305	4	2,104,712	2
Table 2: Cars bought on finance by businesses
New business	Mar 2026	%  change on prev. year	3 months to Mar 2026	% change on prev. year	12 months to Mar 2026	% change on prev. year
New cars
Number of cars	45,321	16	90,136	0	349,824	-2
Used cars
Number of cars	5,721	31	15,938	30	55,855	2