With used EV transactions up 57% year-on-year in 2024, tax exemptions ending in April 2025, and regional buyers driving demand outside London, the car finance industry is entering a new era, writes Louis Rix of CarFinance 247.
The UK’s used car market is no longer a London-centric story, it’s a national one, and it’s being rewritten by electric vehicles, regional demand, and a new wave of lenders
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First, the EV surge is undeniable. Transactions rose sharply in 2024, and applications continued to climb in 2025. Yet affordability is the looming question. With road tax and luxury levies kicking in from April 2025, the market risks cooling among first-time and budget-conscious buyers. For B2B players, this means recalibrating finance packages and marketing strategies to meet a more price-sensitive audience.
Second, regional growth is outpacing the capital. The North West and North East are emerging as hotspots for car finance applications, reflecting both economic resilience and long-term shifts in ownership patterns. Businesses that continue to over-index on London risk missing where the real momentum lies.
Finally, the finance landscape itself is changing. New entrants are bringing fresh competition, unburdened by legacy systems and reputational baggage. Their focus on affordability, tiered rates, and modern risk models could reset expectations across the industry. For incumbents, the challenge is clear: innovate or risk irrelevance.
The message for B2B stakeholders is simple, 2026 won’t just be another year of incremental change. It will be a year where affordability, regional demand, and new competition converge to reshape the car finance ecosystem. Those who anticipate these shifts will be best placed to capture growth in a market that is evolving faster than ever.
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