The first half of 2026 marks the UK’s car finance strongest H1 performance in almost two years, according to Solera cap hpi’s Market Eye.
A sharp rise in new vehicle lending helped push total agreement volumes close to half a million a month.
Chris Wright, regional vice president at Solera, said: “The finance market entered the second half of the year with strong momentum.
“The recovery in new car finance is now well established, while the used market continues to demonstrate the consistency that has underpinned the industry for several years.”
A new study of Solera cap hpi’s Market Eye database shows 3.13 million finance agreements were written during H1 2026, up 8.9% from the same period last year.
New car finance was a standout performer, with agreement volumes climbing 19.5% year-on-year to 1.29 million in H1. June alone recorded 234,126 new finance agreements, an increase of 15.8% compared with June 2025.
March proved a milestone, with the spring plate change helping drive 333,031 new agreements, the highest monthly figure recorded in the two-year dataset.
Solera cap hpi’s rolling 12-month average has risen every month since February 2025, increasing from 174,483 agreements to 199,349 by June 2026, marking 17 consecutive months of growth.
Used car finance agreement volumes reached 1.84 million during H1 2026, up 2.5% on 2025, while June volumes increased 3.4% to 302,733.
The used sector accounts for around 59% of all finance agreements written in H1.
Monthly volumes have consistently remained between 290,000 and 300,000 agreements, underlining continued consumer demand despite wider economic pressures.
Across both new and used vehicles, total finance agreements reached 536,859 in June, an increase of 8.5% compared with the same month last year. The rolling 12-month average for the overall market has now climbed to 495,575 agreements, up 6.7% year-on-year.
