Consumer car finance remains resilient, reports FLA
The Finance and Leasing Association has reported that consumer car finance new business volumes fell one per cent in January compared to the same month in 2025.
The corresponding value of new business was three per cent higher over the same period.
Meanwhile, in the 12 months to January, new business volumes grew by two per cent compared with the same period in 2025.
FLA figures also show that the consumer new car finance market reported new business up 13% by both value and volume in January compared with the same month in 2025, while new business volumes in this market were up nine per cent in the 12 months to January.
In the used car finance market, the value of new business was two per cent lower in January than in the same month in 2025, while new business volumes fell by five per cent. Across the year, new business volumes were down one per cent.
Encouraging start
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The consumer new car finance market made an encouraging start to 2026, carrying forward the momentum built at the end of last year.
“While the used car finance market began the year more slowly, annual new business volumes remained broadly stable, highlighting the sector’s underlying resilience.
“However, the outlook has become more challenging. Rising tensions in the Middle East are pushing up global energy costs, and inflation is now expected to increase rather than ease, delaying any move towards lower interest rates and placing renewed pressure on household budgets.
“If these cost pressures persist, consumers are likely to become more cautious, leading to softer demand and greater sensitivity to affordability.”
