The Finance & Leasing Association (FLA) released strong motor finance figures for the March plate-change month.
The consumer new car finance market reported new business up 15% by value and 14% by volume in March compared with the same month in 2025. In Q1 2026, new business volumes in this market were 14% higher than in Q1 2025.
The FLA said the performance reflected the importance of motor finance in supporting demand and maintaining affordability in the new car market.
The release followed hard on the announcement by the Financial Conduct Authority (FCA) that its motor finance redress scheme will be delayed because of challenges made by three finance houses and a consumer lobbyist.
Finance also played a critical role in the used market. The FLA reported that the consumer used car finance market reported the value of new business in March 4% higher than in the same month in 2025, while new business volumes grew by 2%. In Q1 2026, new business volumes in this market were 2% lower than in Q1 2025.
Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The consumer car finance market made a strong start to 2026 against a challenging backdrop for household finances and reflects the continued importance of finance in supporting demand and maintaining affordability in the car market.
“Growth was led by new car finance, where activity increased sharply and March delivered the strongest volumes since 2019.
“Finance penetration remained high, with FLA members funding close to 88% of private new car purchases over the past year, underlining how central credit is to consumer access to newer, more efficient vehicles.
“Credit performance remained reassuringly stable even as cost pressures persist for households. While affordability constraints and the pace of electrification continue to shape the outlook, consumer car finance is playing a critical role in smoothing adjustment and sustaining market resilience.”
