Car finance market falls in April – FLA
New figures released by the Finance & Leasing Association (FLA) have revealed the first fall in the car finance market in more than six months.
Its data has shown that consumer car finance new business volumes fell five per cent in April 2025 compared with the same month in 2024. The corresponding value of new business fell by two per cent over the same period.
Meanwhile, in the first four months of 2025, new business was one per cent higher by volume compared with the same period in 2024.
The consumer new car finance market reported new business by value in April seven per cent lower than in the same month in 2024, while new business volumes fell by eight per cent. In the first four months of 2025, new business volumes in this market were 11% higher than in the same period in 2024.
Used car finance
The consumer used car finance market reported the value of new business in April four per cent lower than in the same month in 2024, while new business volumes grew by two per cent.
In the first four months of 2025, new business volumes in this market were three per cent lower than in the same period in 2024.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “April saw the consumer car finance market report its first fall in new business since October 2024 as higher vehicle excise duties took effect, and consumer spending power was hit by higher energy, telephone and water bills.
“The FLA’s quarter two industry outlook survey results showed that three-quarters of motor finance respondents expected some increase in new business over the next year despite subdued consumer and business confidence.
“The prospect of further cuts in interest rates, strong consumer savings, and the potential for growth as the UK transitions to greener assets should contribute to single-digit new business growth by value over the next 12 months.”
