Consumer car finance market returns to growth
New figures from the Finance & Leasing Association have revealed strong growth in the value and volumes of consumer car finance.
It found that consumer car finance new business volumes grew five per cent in September compared to the same month in 2024, while the value of new business was nine per cent higher over the same period.
In the new car sector, values and volumes were 11% higher in September compared to 12 months ago, while for used cars values rose six per cent year on year and volumes were up one per cent.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The consumer car finance market returned to growth in September, supported by a strong performance in the new car finance sector. It was a record month for new battery electric vehicles financed by consumers using point-of-sale car finance, accounting for 17% of total volumes.
“The performance of the consumer car finance market so far this year suggests it is on track to meet expectations of six per cent growth in the value of new business in 2025 as a whole.
“FLA motor finance providers currently help more than six million consumers buy new and used cars across all regions of the UK which is equivalent to enabling more than one in 10 UK adults to stay on the move.”
