Consumer car finance volumes up 11%, says FLA
New figures from the Finance & Leasing Association (FLA) revealed that consumer car finance volumes grew in March 2025 by 11% compared with the same month in 2024.
The corresponding value of new business grew by 18% over the same period, while volumes were up by three per cent over the same period.
Finance values for new cars were up 25% in March compared to the same month in 2024, while new business volumes grew by 21%.
For used cars, the value of new business in March was nine per cent higher than in the same month in 2024, while new business volumes grew by three per cent.
Strong growth rate
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “March saw the consumer car finance market report its strongest rate of growth in more than three years supported by the issue of a new registration plate, consumers bringing forward new car purchases ahead of increases in vehicle excise duty from April 2025, and slightly more working days in March 2025 than in the same month in 2024 due to the timing of Easter.
“The outlook remains uncertain with the latest indicators of consumer confidence showing a significant downturn in sentiment about economic conditions. Further cuts in interest rates should help to ease some of the pressure on real household disposable incomes.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
