Consumer car finance volumes rise 7% in June as new car market strengthens

Consumer car finance new business volumes increased by 7% in June 2026 compared with the same month last year, according to the latest figures from the Finance & Leasing Association (FLA).

The value of new business rose by 11% year-on-year, while across the first half of 2026 consumer car finance volumes were 4% higher than during the same period in 2025.

Growth was led by the consumer new car finance market, where both the value and volume of new business increased by 21% in June. New business volumes for the first six months of the year were 17% ahead of the corresponding period last year.

The used car finance market was more subdued. New business volumes were unchanged in June compared with a year earlier, although the value of advances increased by 1%. During the first half of 2026, used car finance volumes fell by 2% year-on-year.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said the figures represented a “strong first half year” for the consumer car finance market, supported by a buoyant new car sector and increasing demand for electric vehicles.

She highlighted the “vital role” of finance in the transition to electrification, with FLA members funding almost nine in ten private new car purchases and almost all private new battery electric vehicle (BEV) purchases.

Kilkelly also welcomed the Government’s review of the Zero Emission Vehicle (ZEV) Mandate, but stressed that the long-term health of the EV market would depend on supporting demand for used vehicles as well as new registrations.

“As increasing volumes of electric vehicles enter the used market over the coming years, targeted measures to support consumer demand will be essential to ensure a healthy, sustainable and predictable balance between new and used vehicle markets,” she said.

Table 1: Cars bought on finance by consumers through the point of sale
New business	Jun 2026	% change on prev. year	3 months to Jun 2026	% change on prev. year	12 months to Jun 2026	% change on prev. year
New cars
Value of advances (£m)	2,041	21	5,199	21	21,006	13
Number of cars	70,614	21	180,674	20	735,587	13
Used cars
Value of advances (£m)	1,829	1	5,462	-2	21,776	1
Number of cars	116,690	0	348,352	-3	1,390,685	-1
Total cars
Value of advances (£m)	3,870	11	10,661	8	42,782	7
Number of cars	187,304	7	529,026	4	2,126,272	3

Table 2: Cars bought on finance by businesses
New business	Jun 2026	% change on prev. year	3 months to Jun 2026	% change on prev. year	12 months to Jun 2026	% change on prev. year
New cars
Number of cars	35,192	26	101,259	26	369,423	8
Used cars
Number of cars	5,273	18	15,590	22	58,643	11