The value of motor finance in the used car market is set to fall 2% in 2025, according to the latest forecast from the Finance and Leasing Association. This will be offset by a rise of 5% in value of new cars sold on finance.
The forecasts were disclosed as the FLA reported the consumer new car finance market by value in January 14% higher than in the same month in 2024, while new business volumes grew by 9%.
In the twelve months to January 2025, new business volumes in this market were 1% lower than in the same period in 2024.
The consumer used car finance market reported a fall in the value of new business in January of 2% compared with the same month in 2024, while new business volumes fell by 6%.
In the twelve months to January 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 new car finance market reported a third consecutive month of new business growth in January.
“By contrast, the consumer used car finance market reported a further single-digit contraction in new business over the same period. Both markets saw growth in average advances compared with January 2024.
“Our latest research suggests 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.”
