Consumer car finance new business volumes fell by 2% in February
New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in February 2025 by 2% compared with the same month in 2024. The corresponding value of new business grew by 5% over the same period. In the first two months of 2025, new business was 3% lower by volume compared with the same period in 2024.
The consumer new car finance market reported new business by value in February 19% higher than in the same month in 2024, while new business volumes grew by 17%. In the first two months of 2025, new business volumes in this market were 11% higher than in the same period in 2024.
The consumer used car finance market reported a fall in the value of new business in February of 1% compared with the same month in 2024, while new business volumes fell by 7%. In the first two months of 2025, new business volumes in this market were 7% lower than in the same period in 2024.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: 
“The consumer new car finance market continued to grow in February supported in part by consumers bringing forward purchases to get ahead of the hikes in vehicle excise duty from April. The consumer used car finance market reported another month of lower new business volumes, but both markets continued to see growth in average advances.
“The US administration’s tariff hikes have weakened an already soft economic outlook. Uncertainty about jobs and higher inflation in the coming months are likely to weigh further on consumer confidence and spending. Our latest research suggests the value of new business provided by the consumer car finance market will grow by 1% in 2025, with growth of 5% in the consumer new car finance market offset by a 2% fall in the consumer used car finance market.
“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 | Feb 2025 | % change on prev. year | 3 months to Feb 2025 | % change on prev. year | 12 months to Feb 2025 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 1,031 | 19 | 3,547 | 14 | 18,604 | 10 |
| Number of cars | 36,701 | 17 | 121,566 | 10 | 651,050 | 2 |
| Used cars | ||||||
| Value of advances (£m) | 1,858 | -1 | 5,144 | -2 | 21,341 | -3 |
| Number of cars | 120,758 | -7 | 335,729 | -6 | 1,422,958 | -3 |
| Total cars | ||||||
| Value of advances (£m) | 2,889 | 5 | 8,691 | 4 | 39,945 | 2 |
| Number of cars | 157,459 | -2 | 457,295 | -2 | 2,074,008 | -1 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Feb 2025 | % change on prev. year | 3 months to Feb 2025 | % change on prev. year | 12 months to Feb 2025 | % change on prev. year |
| New cars | ||||||
| Number of cars | 26,917 | 9 | 81,439 | -5 | 350,616 | -8 |
| Used cars | ||||||
| Number of cars | 3,785 | -16 | 11,267 | -22 | 53,801 | -12 |