Consumer car finance volumes edge up 2% in 2025

Consumer car finance new business volumes increased by 2% in 2025, with the market finishing the year strongly, according to new figures from the Finance & Leasing Association (FLA).

The data shows that new business surged in December 2025, rising by 15% by value and 12% by volume compared with the same month in 2024.

Growth was driven largely by the new car market. Consumer new car finance recorded a 22% increase in the value of new business and a 27% rise in volumes in December year-on-year. Over the full year, new car finance volumes were 8% higher than in 2024, marking a return to annual growth.

The used car finance market also expanded in December, with the value of new business up 8% and volumes increasing by 5% compared with December 2024. However, across the whole of 2025, used car finance volumes were 1% lower than the previous year.

Overall, the figures suggest the consumer car finance market regained momentum toward the end of the year after a more mixed performance earlier in 2025.

“The consumer car finance market ended 2025 on a strong note with new business volumes growing at their fastest pace for almost four years in December,” she said. “For the first time since 2021, the new car finance market recorded annual growth in new business volumes. The used car finance market remained resilient with annual new business volumes only slightly lower than in 2024.”

She added that the industry continues to play an important role in helping consumers access vehicles.

“The industry continues to play a vital role in enabling more than six million consumers to access the vehicles they need, whether new or used. This year, easing inflation and the prospect of lower interest rates should further support affordability, helping more households manage essential mobility.”

Table 1: Cars bought on finance by consumers through the point of sale
New business	Dec 2025	%  change on prev. year	3 months to Dec 2025	% change on prev. year	12 months to Dec 2025	% change on prev. year
New cars
Value of advances (£m)	1,426	22	4,386	11	19,278	9
Number of cars	49,737	27	155,096	14	677,840	8
Used cars
Value of advances (£m)	1,391	8	4,826	4	21,842	3
Number of cars	88,559	5	308,405	0	1,406,915	-1
Total cars
Value of advances (£m)	2,817	15	9,212	7	41,119	6
Number of cars	138,296	12	463,501	4	2,084,755	2
Table 2: Cars bought on finance by businesses
New business	Dec 2025	%  change on prev. year	3 months to Dec 2025	% change on prev. year	12 months to Dec 2025	% change on prev. year
New cars
Number of cars	28,798	-1	91,575	0	349,592	-1
Used cars
Number of cars	4,322	24	14,209	21	52,221	-7