Consumer car finance market remains resilient
New figures from the Finance & Leasing Association (FLA) have revealed modest growth in the consumer car finance market over the past year.
It found that consumer car finance new business volumes grew by two per cent in February compared with the same month in 2025, while the value of new business was five per cent higher over the same period.
The consumer new car finance market reported new business up 16% by value and 15% by volume in February compared to a year ago, while the consumer used car finance market remained level in value but fell one per cent in volume.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The consumer new car finance market recorded a sixth consecutive month of growth in February, with new business volumes reaching their strongest February level since before the pandemic. At the same time, the used car finance market continued to show a broadly stable year‑on‑year performance.
“The UK economy now faces a more challenging outlook, as the conflict in the Middle East is likely to weigh on activity, confidence and financial conditions. Nevertheless, recent trends in motor finance suggest a degree of underlying resilience, with the market continuing to support consumer demand despite significant ongoing economic uncertainty.”
