Consumer car finance market remains robust
New figures from the Finance & Leasing Association show that consumer car finance new business volumes grew by one per cent year-on-year in August.
Meanwhile, the value of new business was three per cent higher over the same period.
Year-to-date, new business volumes have grown by three per cent compared with the same period in 2025.
The consumer new car finance market reported new business up 21% by value and 22% by volume in August compared with the same month in 2025, while in the eight months to August volumes in this market were 17% higher than in the same period in 2025.
However, the consumer used car finance market reported a fall in new business of six per cent by both value and volume in August, while volumes year-to-date are three per cent down.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “Consumer car finance continued to perform strongly in August, reflecting ongoing growth in the new car market. FLA members financed 89% of private new car sales, demonstrating the central role of finance in helping consumers access affordable transport and spread the cost of vehicle ownership.”
Ahead of the Autumn Budget, she continued: “A clear and predictable approach to vehicle taxation, including incentives that encourage the adoption of used electric vehicles, would give consumers greater confidence to make long-term purchasing decisions.
“At a time when economic uncertainty remains elevated, policies that support consumer confidence and encourage investment are likely to deliver greater benefits for growth than measures that increase the cost of ownership or create further uncertainty.”
