Consumer car finance volumes fell by 5% in April, but overall growth seen in 2025

From Yahoo Finance: 2025-06-17 10:01:00

Consumer car finance new business volumes fell by 5% in April 2025 compared to the previous year, with a 2% decrease in the value of new business, according to the Finance & Leasing Association (FLA). Despite the decline in April, the first four months of 2025 showed a 1% increase in new business volumes compared to the same period in 2024. The consumer new car finance market reported a 7% decrease in new business value and an 8% drop in volumes in April 2025 compared to the previous year, but new business volumes were up by 11% in the first four months of 2025. On the other hand, the consumer used car finance market saw a 4% decrease in new business value in April 2025, with volumes growing by 2%. Over the first four months of 2025, new business volumes in the consumer used car finance market were 3% lower than in the same period in 2024. FLA research and chief economist director Geraldine Kilkelly noted that higher vehicle excise duties and increased utility bills impacted consumer spending power in April.

In March, the FLA reported an 11% increase in consumer car finance new business volumes for March 2025 compared to the previous year, with overall new business volumes in the first quarter of 2025 being 3% higher compared to the first quarter of 2024. The FLA’s industry outlook survey results indicated that three-quarters of motor finance respondents expected some increase in new business over the next year, despite subdued consumer and business confidence. The FLA anticipates single-digit new business growth by value over the next 12 months, attributing it to potential interest rate cuts, consumer savings, and the transition to greener assets in the UK. Customers facing payment concerns are advised to contact their lender promptly for assistance.



Read more at Yahoo Finance: FLA reports 5% fall in consumer car finance volumes in April