Dealer funding growth reflects rising retail confidence
New analysis has revealed continued growth in dealer funding through the second quarter of the year.
NextGear Capital, which is part of Cox Automotive, found increases in credit availability, vehicle funding volumes and demand for electric vehicles.
The data also highlighted growing demand for vehicle stock funding, with total vehicles funded in the first half of the year up by 32.4% compared with the same period in 2025, while vehicles funded through auction channels rose by 27%.
Dealers are also funding more vehicles on average, with average units per dealer increasing by 7.4% year-on-year.
Alternative fuel vehicles were one of the strongest growth areas in the market, with funding up 13% in the second quarter of the year and 63% year-on-year. Hybrid funding was down 11.9% compared with the previous quarter but were still 37% up year-on-year
Chris Moore, head of credit and customer operations at NextGear Capital, said: “Sustained growth across both volumes and average credit limits reflects growing confidence across both lenders and dealers.
“In addition, growing levels of stock acquisition, supported by greater access to funding, demonstrates a willingness to scale operations in response to demand. Together, these trends are positive indicators for the health of the used car market.”
