Consumer car finance sees 2% growth in February

The UK consumer car finance market continued to show resilience in February 2026, with new business volumes rising modestly despite ongoing economic uncertainty.

New figures from the Finance & Leasing Association (FLA) reveal that consumer car finance new business volumes increased by 2% compared with February 2025, while the total value of new business grew by a stronger 5% over the same period. Across the first two months of 2026, volumes edged up by 1% year-on-year.

The overall growth was largely driven by robust performance in the new car segment. Consumer new car finance recorded a 15% increase in volumes and a 16% rise in value in February, marking its sixth consecutive month of expansion. Volumes in this segment have now reached their highest February level since before the pandemic, with activity in the year-to-date running 14% ahead of the same period in 2025.

In contrast, the used car finance market showed signs of softening demand. The value of new business remained broadly flat in February, while volumes dipped by 1% compared with a year earlier. Over the first two months of 2026, used car finance volumes were down 3%, suggesting more cautious consumer behaviour in the second-hand market.

“The consumer new car finance market recorded a sixth consecutive month of growth in February, with new business volumes reaching their strongest February level since before the pandemic,” she said. “At the same time, the used car finance market continued to show a broadly stable year-on-year performance.”

Kilkelly noted that while recent data points to underlying strength, the broader economic environment remains uncertain. Ongoing geopolitical tensions, particularly the conflict in the Middle East, are expected to weigh on consumer confidence and financial conditions in the months ahead.

“Nevertheless, recent trends in motor finance suggest a degree of underlying resilience, with the market continuing to support consumer demand despite significant ongoing economic uncertainty,” she added.

Table 1: Cars bought on finance by consumers through the point of sale
New business	Feb 2026	%  change on prev. year	3 months to Feb 2026	% change on prev. year	12 months to Feb 2026	% change on prev. year
New cars
Value of advances (£m)	1,134	16	3,908	17	19,584	10
Number of cars	40,702	15	138,029	18	688,886	9
Used cars
Value of advances (£m)	1,842	0	5,161	1	21,796	3
Number of cars	118,570	-1	330,581	-1	1,398,394	-1
Total cars
Value of advances (£m)	2,976	5	9,069	7	41,379	6
Number of cars	159,272	2	468,610	4	2,087,280	2
Table 2: Cars bought on finance by businesses
New business	Feb 2026	%  change on prev. year	3 months to Feb 2026	% change on prev. year	12 months to Feb 2026	% change on prev. year
New cars
Number of cars	20,456	-19	73,597	-8	343,538	-2
Used cars
Number of cars	5,348	39	14,539	27	54,501	0