Consumer car finance makes strong start to 2026
The consumer car finance market grew in March with volumes up eight per cent year-on-year and values rising 11%.
Meanwhile, new business volumes were up four per cent in the first quarter of the year compared to the same period in 2025.
The Finance and Leasing Association has reported that the consumer finance market for new cars was up 15% by value and 14% by volume in March, with volumes 14% higher in the first three months of the year.
The consumer finance market for used cars was up four per cent in value in March and two per cent in value, although volumes in the first quarter was actually down by two per cent.
Strong start
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The consumer car finance market made a strong start to 2026 against a challenging backdrop for household finances and reflects the continued importance of finance in supporting demand and maintaining affordability in the car market.
“Growth was led by new car finance, where activity increased sharply and March delivered the strongest volumes since 2019. Finance penetration remained high, with FLA members funding close to 88% of private new car purchases over the past year, underlining how central credit is to consumer access to newer, more efficient vehicles.
“Credit performance remained reassuringly stable even as cost pressures persist for households. While affordability constraints and the pace of electrification continue to shape the outlook, consumer car finance is playing a critical role in smoothing adjustment and sustaining market resilience.”
