Consumer car finance new business volumes fell in May 2025 by 2% compared with the same month in 2024, according to figures released by the Finance & Leasing Association (FLA).
The corresponding value of new business grew by 1% over the same period. In the first five months of 2025, new business volumes were at a similar level to the same period in 2024.
The consumer new car finance market reported new business by value in May 1% lower than in the same month in 2024, while new business volumes fell by 2%. In the first five months of 2025, new business volumes in this market were 8% higher than in the same period in 2024.
The consumer used car finance market reported the value of new business in May 3% higher than in the same month in 2024, while new business volumes fell by 2%. In the first five months of 2025, new business volumes in this market were 3% lower than in the same period in 2024.
Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “Both consumer new car finance and used car finance markets reported a modest fall in new business volumes of 2% in May. The consumer car finance market overall saw new business up 6% by value in the first five months of 2025, while volumes held steady.
“Our latest research suggests that the value of consumer car finance new business in 2025 would grow by 7%, with 7% growth in the new car finance market and 6% growth in the used car finance market. Consumer confidence has improved slightly in recent months with the prospect of further cuts in interest rates in the coming months.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
“UK consumer car finance new business volumes fell by 2% in May 2025: FLA” was originally created and published by Motor Finance Online, a GlobalData owned brand.
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