Consumer car finance new business volumes grew by 11% in March 2025
New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes grew in March 2025 by 11% compared with the same month in 2024. The corresponding value of new business grew by 18% over the same period. In Q1 2025, new business was 3% higher by volume compared with Q1 2024.
The consumer new car finance market reported new business by value in March 25% higher than in the same month in 2024, while new business volumes grew by 21%. In Q1 2025, new business volumes in this market were 16% higher than in Q1 2024.
The consumer used car finance market reported the value of new business in March 9% higher than in the same month in 2024, while new business volumes grew by 3%. In Q1 2025, new business volumes in this market were 3% lower than in Q1 2024.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: “March saw the consumer car finance market report its strongest rate of growth in more than three years supported by the issue of a new registration plate, consumers bringing forward new car purchases ahead of increases in vehicle excise duty from April 2025, and slightly more working days in March 2025 than in the same month in 2024 due to the timing of Easter.
“The outlook remains uncertain with the latest indicators of consumer confidence showing a significant downturn in sentiment about economic conditions. Further cuts in interest rates should help to ease some of the pressure on real household disposable incomes.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business | Mar 2025 | % change on prev. year | 3 months to Mar 2025 | % change on prev. year | 12 months to Mar 2025 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 3,143 | 25 | 5,319 | 20 | 18,499 | 10 |
| Number of cars | 109,206 | 21 | 186,452 | 16 | 651,254 | 4 |
| Used cars | ||||||
| Value of advances (£m) | 2,010 | 9 | 5,826 | 2 | 21,261 | -2 |
| Number of cars | 129,774 | 3 | 380,317 | -3 | 1,414,146 | -2 |
| Total cars | ||||||
| Value of advances (£m) | 5,153 | 18 | 11,145 | 10 | 39,760 | 3 |
| Number of cars | 238,980 | 11 | 566,769 | 3 | 2,065,400 | 0 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Mar 2025 | % change on prev. year | 3 months to Mar 2025 | % change on prev. year | 12 months to Mar 2025 | % change on prev. year |
| New cars | ||||||
| Number of cars | 41,185 | 23 | 93,703 | 9 | 358,317 | -5 |
| Used cars | ||||||
| Number of cars | 4,317 | 1 | 12,158 | -12 | 53,827 | -12 |