Newly released figures from the Finance & Leasing Association (FLA) has indicated new business volumes in consumer car finance grew by 5% in September 2025 compared with the same month in 2024.  

The value of new business increased by 9% in September 2025 as against the same month in 2024. 

Looking at the first nine months of this year, there was a 1% rise in overall new business volumes compared to the same period last year. 

Within the new car finance segment, both the number and value of agreements were 11% higher in September year-on-year (YoY). 

For the January to September period, new car finance volumes grew by 7% compared to the same period of 2024. 

The value of new business in used car finance segment was up by 6% in September compared to the previous year, while new business volumes grew by just 1%. 

From January through September, used car finance volumes were down by 2% on an annual basis. 

FLA chief economist and research director Geraldine Kilkelly said:  “The consumer car finance market returned to growth in September supported by a strong performance in the new car finance sector. It was a record month for new battery electric vehicles financed by consumers using point-of-sale car finance, accounting for 17% of total volumes. 

“The performance of the consumer car finance market so far this year suggests it is on track to meet expectations of 6% growth in the value of new business in 2025 as a whole.” 

The FLA’s data for August indicated a weaker month for consumer car finance sector, with a 5% drop in new business volumes and a 1% decrease in overall value compared to August last year. 

Kilkelly added: “FLA motor finance providers currently help more than six million consumers buy new and used cars across all regions of the UK, which is equivalent to enabling more than one in ten UK adults to stay on the move. 

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”