Consumer car finance new business volumes dropped by 2% in May 2025 compared to the previous year, as reported by the FLA. However, the value of new business increased by 1% during the same period. Overall, new business volumes in the first five months of 2025 remained steady with 2024.

In the consumer new car finance market, new business value was down 1% in May compared to 2024, while volumes fell by 2%. However, the first five months of 2025 saw an 8% increase in volumes from the previous year.

The consumer used car finance market saw a 3% increase in new business value in May from 2024, but volumes dropped by 2%. Overall, new business volumes were 3% lower in the first five months of 2025 compared to the same period in 2024.

FLA’s Director of Research, Geraldine Kilkelly, highlighted a 2% decrease in new business volumes for both consumer new car finance and used car finance markets in May. Despite this, new business value in the consumer car finance market grew by 6% in the first five months of 2025.

FLA predicts a 7% growth in the value of consumer car finance new business for 2025, with a 7% increase in new car finance market and 6% growth in the used car finance market. Consumer confidence is on the rise, potentially driven by expected interest rate cuts. Customers facing payment concerns are advised to reach out to their lenders promptly.

Read more at Yahoo Finance: UK consumer car finance new business volumes fell by 2% in May 2025: FLA