Consumer car finance new business volumes fell by 5% in April 2025 compared with the same period last year, according to the new figures from the Finance & Leasing Association (FLA).
The value of new business also saw a decrease of 2% over the same period.
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Despite the decline in April, the first four months of 2025 showed a 1% increase in new business volumes compared with the same period in 2024, according to the association.
The consumer new car finance market reported a 7% decrease in new business value and an 8% drop in volumes in April 2025 compared to April 2024.
However, new business volumes in the consumer new car finance market were up by 11% in the first four months of 2025 compared to the same period in 2024.
In contrast, the consumer used car finance market saw a 4% decrease in new business value in April 2025 while volumes grew by 2%.
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By GlobalDataOver the first four months of 2025, new business volumes in the consumer used car finance market were 3% lower than in the same period in 2024.
FLA research and chief economist director Geraldine Kilkelly said: “April saw the consumer car finance market report its first fall in new business since October 2024 as higher vehicle excise duties took effect, and consumer spending power was hit by higher energy, telephone and water bills.
“The FLA’s Q2 2025 industry outlook survey results showed that three-quarters of motor finance respondents expected some increase in new business over the next year despite subdued consumer and business confidence.
“The prospect of further cuts in interest rates, strong consumer savings, and the potential for growth as the UK transitions to greener assets should contribute to single-digit new business growth by value over the next 12 months. As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
In March, the FLA reported an 11% increase in consumer car finance new business volumes for March 2025 compared to March 2024.
Overall, new business volumes in the first quarter of 2025 were 3% higher compared to the first quarter of 2024.
