Consumer car finance new business volumes fell by 5% in August 2025
New figures released today by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in August 2025 by 5% compared with the same month in 2024. The corresponding value of new business was 1% lower over the same period. In the eight months to August 2025, new business volumes held steady compared with the same period in 2024.
The consumer new car finance market reported new business by value in August 1% lower than in the same month in 2024, while new business volumes fell by 3%. In the eight months to August 2025, new business volumes in this market were 6% higher than in the same period in 2024.
The consumer used car finance market reported the value of new business in August 1% lower than in the same month in 2024, while new business volumes fell by 5%. In the eight months to August 2025, new business volumes in this market were 2% 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 car finance market reported modest contractions in new business in both the new and used car finance sectors in August, which for the former is traditionally one of the quieter months of the year ahead of the issue of the September registration plate.
“Uncertainty about what the Autumn Budget will bring for households has contributed to a downturn in consumer confidence. The FLA’s Q3 2025 Industry Outlook Survey suggested that more than half of motor finance respondents expected consumer spending to decrease over the next year, while the proportion of respondents anticipating some increase in new business fell from 77% to 69% between Q2 and Q3 2025.
“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 | Aug 2025 | % change on prev. year | 3 months to Aug 2025 | % change on prev. year | 12 months to Aug 2025 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 970 | -1 | 4,071 | 4 | 18,557 | 9 |
| Number of cars | 34,422 | -3 | 141,835 | 2 | 648,767 | 5 |
| Used cars | ||||||
| Value of advances (£m) | 1,762 | -1 | 5,537 | 4 | 21,548 | 1 |
| Number of cars | 114,003 | -5 | 355,954 | 0 | 1,403,832 | -2 |
| Total cars | ||||||
| Value of advances (£m) | 2,731 | -1 | 9,608 | 4 | 40,104 | 5 |
| Number of cars | 148,425 | -5 | 497,789 | 0 | 2,052,599 | 0 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Aug 2025 | % change on prev. year | 3 months to Aug 2025 | % change on prev. year | 12 months to Aug 2025 | % change on prev. year |
| New cars | ||||||
| Number of cars | 22,023 | 4 | 79,527 | 3 | 360,750 | -1 |
| Used cars | ||||||
| Number of cars | 3,865 | 3 | 12,914 | -26 | 49,371 | -20 |