Uncertainty about jobs and higher inflation in the coming months are likely to weigh further on consumer confidence and spending.
That’s the conclusion of the latest research from the Finance & Leasing Association which it said suggested the value of new business provided by the consumer car finance market will grow by 1% in 2025, with growth of 5% in the consumer new car finance market offset by a 2% fall in the consumer used car finance market.”
The FLA reported that the consumer new car finance market reported new business by value in February 19% higher than in the same month in 2024, while new business volumes grew by 17%.
In the first two months of 2025, new business volumes in this market were 11% higher than in the same period in 2024.
The consumer used car finance market reported a fall in the value of new business in February of 1% compared with the same month in 2024, while new business volumes fell by 7%.
In the first two months of 2025, new business volumes in this market were 7% lower than in the same period in 2024.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The consumer new car finance market continued to grow in February supported in part by consumers bringing forward purchases to get ahead of the hikes in vehicle excise duty from April.
“The consumer used car finance market reported another month of lower new business volumes, but both markets continued to see growth in average advances.
“The US administration’s tariff hikes have weakened an already soft economic outlook.
