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The UK car finance market is on target to see 6% growth in 2025 year on year, following a successful September plate-change performance.
That’s the forecast from the Finance & Leasing Association which said the consumer new car finance market rose 11% by value and volume in September year on year.
In the nine months to September 2025, new business volumes in this market were 7% higher than in the same period in 2024.
The consumer used car finance market reported the value of new business 6% higher in September than in the same month in 2024, while new business volumes grew by 1%.
“In the nine months to September 2025, new business volumes in this market were 2% lower than in the same period in 2024.
Geraldine Kilkelly, director of research and chief economist at the FLA, 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.
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business | Sep 2025 | %
change on prev. year |
3 months to Sep 2025 |
% change on prev. year | 12 months to Sep 2025 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 2,900 | 11 | 5,282 | 6 | 18,845 | 8 |
| Number of cars | 101,581 | 11 | 185,234 | 5 | 658,582 | 5 |
| Used cars | ||||||
| Value of advances (£m) | 1,890 | 6 | 5,619 | 4 | 21,671 | 2 |
| Number of cars | 120,728 | 1 | 360,278 | -1 | 1,406,507 | -2 |
| Total cars | ||||||
| Value of advances (£m) | 4,790 | 9 | 10,901 | 5 | 40,516 | 5 |
| Number of cars | 222,309 | 5 | 545,512 | 1 | 2,065,089 | 0 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Sep 2025 | %
change on prev. year |
3
months to Sep 2025 |
% change on prev. year | 12 months to Sep 2025 | % change on prev. year |
| New cars | ||||||
| Number of cars | 35,419 | 8 | 87,020 | 7 | 363,321 | 0 |
| Used cars | ||||||
| Number of cars | 4,427 | 10 | 12,881 | -19 | 49,787 | -18 |
