Car finance firms are set to report a record level of new business by value in 2025 of more than £41bn with 2.1 million customers on board.
That’s the view from the Finance & Leasing Association (FLA) which was reporting finance figures for October.
For new cars, the consumer new car finance market reported new business up 12% by value and 14% by volume compared with the same month in 2024.
In the ten months to October 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 5% higher in October than in the same month in 2024, while new business volumes fell by 1%. In the ten months to October 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: “October saw the consumer new car finance market report its strongest growth performance since March this year, while the consumer used car finance market continued to report steady single-digit growth in average advances.
“FLA consumer car finance providers are on track to report a record level of new business by value in 2025 of more than £41 billion. The corresponding number of consumers supported in financing car purchases in 2025 is expected to be almost 2.1 million.
| Table 1: Cars bought on finance by consumers through the point of sale | ||||||
| New business | Oct 2025 | %
change on prev. year |
3 months to Oct 2025 |
% change on prev. year | 12 months to Oct 2025 | % change on prev. year |
| New cars | ||||||
| Value of advances (£m) | 1,506 | 12 | 5,376 | 9 | 19,010 | 9 |
| Number of cars | 53,883 | 14 | 189,894 | 9 | 664,999 | 7 |
| Used cars | ||||||
| Value of advances (£m) | 1,865 | 5 | 5,517 | 3 | 21,754 | 3 |
| Number of cars | 118,567 | -1 | 353,267 | -2 | 1,405,272 | -2 |
| Total cars | ||||||
| Value of advances (£m) | 3,371 | 8 | 10,893 | 6 | 40,764 | 6 |
| Number of cars | 172,450 | 3 | 543,161 | 2 | 2,070,271 | 1 |
| Table 2: Cars bought on finance by businesses | ||||||
| New business | Oct 2025 | %
change on prev. year |
3
months to Oct 2025 |
% change on prev. year | 12 months to Oct 2025 | % change on prev. year |
| New cars | ||||||
| Number of cars | 33,820 | 5 | 91,705 | 6 | 365,397 | 1 |
| Used cars | ||||||
| Number of cars | 5,038 | 17 | 13,338 | 11 | 50,527 | -14 |
