Consumer car finance reports strong growth
New figures released by the Finance and Leasing Association have revealed that consumer car finance new business volumes fell by two per cent year-on-year in July.
However, volumes have grown by three per cent in the first seven months of the year compared with the same period in 2025.
The consumer new car finance market reported new business was up 10% by value and volume in July compared with the same month in 2025, with volumes up 16% in the first seven months of the year.
Meanwhile, the consumer used car finance market reported a fall in new business of eight per cent by value and seven per cent by volume in July, while volumes across the first seven months of the year were three per cent down compared to the same period in 2025.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “July’s figures highlight a consumer car finance market that remains broadly resilient. While overall volumes were slightly lower than a year ago, the market has continued to grow in 2026, with volumes up three per cent in the year to date.
“Strong growth in new car finance suggests that consumers remain willing to make significant purchases where confidence and affordability allow. The increasing availability of more affordable new battery electric vehicles is also likely to be influencing buying decisions, encouraging some consumers to choose a new vehicle rather than a used one and contributing to weaker demand in the used car finance market.
“These trends point to an economy that is continuing to grow, albeit at a modest pace. As we look ahead to the Autumn Budget, the government should focus on measures that strengthen consumer confidence, support investment and help the government achieve its objective on net zero.”
