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