Motor finance firms expect to see a fall in consumer spending in the coming year with fears for what’s in store in the Budget this month.
The Finance & Leasing Association, which represents banks and finance houses said fewer of its members were predicting growth in business.
“Uncertainty about what the Autumn Budget will bring for households has contributed to a downturn in consumer confidence,” said Geraldine Kilkelly, director of research and chief economist at the FLA.
“The FLA’s Q3 2025 Industry Outlook Survey suggested that more than half of motor finance respondents expected consumer spending to decrease over the next year, while the proportion of respondents anticipating some increase in new business fell from 77% to 69% between Q2 and Q3 2025,” she added.
Kinnear’s comments came as the FLA released figures for motor finance in August.
The consumer new car finance market reported new business by value in August 1% lower than in the same month in 2024, while new business volumes fell by 3%. In the eight months to August 2025, new business volumes in this market were 6% higher than in the same period in 2024.
The consumer used car finance market reported the value of new business in August 1% lower than in the same month in 2024, while new business volumes fell by 5%.
“In the eight months to August 2025, new business volumes in this market were 2% lower than in the same period in 2024.
