The consumer new car finance market reported new business up 25% by value and 21% by volume in April compared with the same month in 2025.
In the first four months of 2026, new business volumes in this market were 16% higher than in the same period in 2025, according to figures from the Finance & Leasing Association (FLA).
The consumer used car finance market reported the value of new business in April 2% lower than in the same month in 2025, while new business volumes fell by 3%. In the first four months of 2026, new business volumes in this market were 2% lower than in the same period in 2025.
Geraldine Kilkelly, director of research and chief economist at the FLA, said:
“The consumer car finance market made a positive start to the second quarter of 2026, driven by strong growth in new car finance.
“In the near term, the backdrop remains challenging, with cost pressures, weak confidence and higher interest rates weighing on activity.
“However, the recent US Iran agreement marks an important turning point, offering greater stability in energy markets and improving the medium-term outlook for growth and inflation.
“Looking ahead, there are clear opportunities for the motor finance market, particularly in the continued expansion of new and used electric vehicle markets.
“FLA members will play a central role in supporting this transition, enabling access to newer, more efficient vehicles and supporting mobility across the UK.”
