Consumer car finance volumes dip 2% in May

New data released today by the Finance & Leasing Association (FLA) reveals that consumer car finance new business volumes fell by 2% in May 2025 compared to the same month last year, although the value of new business saw a modest rise of 1%.

The figures paint a mixed picture for the consumer car finance sector. While volumes dipped, the increase in value suggests consumers are financing more expensive vehicles or taking out higher-value finance agreements.

Breaking down the numbers, the consumer new car finance market reported a 2% drop in new business volumes and a 1% decline in value compared to May 2024. However, over the first five months of 2025, new car finance volumes were up 8% year-on-year.

The used car finance market showed contrasting trends. While May saw a 3% increase in the value of new business, volumes still fell by 2%. Over the first five months of the year, used car finance volumes were down 3% compared to the same period in 2024.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, commented on the results, saying: “Both consumer new car finance and used car finance markets reported a modest fall in new business volumes of 2% in May.

“The consumer car finance market overall saw new business up 6% by value in the first five months of 2025, while volumes held steady.

“Our latest research suggests that the value of consumer car finance new business in 2025 will grow by 7%, with 7% growth in the new car finance market and 6% growth in the used car finance market. Consumer confidence has improved slightly in recent months with the prospect of further cuts in interest rates in the coming months,” she added.

Table 1: Cars bought on finance by consumers through the point of sale
New business	May 2025	% change on prev. year	3 months to May 2025	% change on prev. year	12 months to May 2025	% change on prev. year
New cars
Value of advances (£m)	1,380	-1	5,746	10	18,396	8
Number of cars	48,817	-2	202,207	7	646,080	3
Used cars
Value of advances (£m)	1,863	3	5,777	4	21,332	-2
Number of cars	120,152	-2	371,721	-1	1,405,918	-3
Total cars
Value of advances (£m)	3,244	1	11,523	7	39,729	3
Number of cars	168,969	-2	573,928	2	2,051,998	-1

Table 2: Cars bought on finance by businesses
New business	May 2025	% change on prev. year	3 months to May 2025	% change on prev. year	12 months to May 2025	% change on prev. year
New cars
Number of cars	31,567	4	103,897	5	356,230	-7
Used cars
Number of cars	4,452	6	12,573	-5	53,154	-13