UK consumer car finance new business drops 5% in August

Consumer car finance new business volumes fell by 5% in August 2025 compared with the same month in 2024, according to the latest figures from the Finance & Leasing Association (FLA). The corresponding value of new business was 1% lower, while volumes over the first eight months of 2025 held steady year-on-year.

In the consumer new car finance market, new business by value in August was 1% lower than in the same month in 2024, with volumes down 3%. However, for the year to date, new business volumes were 6% higher than during the same period in 2024 — suggesting that despite August’s slowdown, overall demand for new car finance remains resilient.

In contrast, the consumer used car finance market saw both the value and volume of new business decline by 1% and 5% respectively in August. Over the first eight months of 2025, used car finance new business volumes were 2% lower than in the same period last year.

“The consumer car finance market reported modest contractions in new business in both the new and used car finance sectors in August, which for the former is traditionally one of the quieter months of the year ahead of the issue of the September registration plate.”

Kilkelly added that economic uncertainty and concerns over the upcoming Autumn Budget have likely affected household sentiment:

“Uncertainty about what the Autumn Budget will bring for households has contributed to a downturn in consumer confidence. The FLA’s Q3 2025 Industry Outlook Survey suggested that more than half of motor finance respondents expected consumer spending to decrease over the next year, while the proportion anticipating some increase in new business fell from 77% to 69% between Q2 and Q3 2025.”

Table 1: Cars bought on finance by consumers through the point of sale
New business	Aug 2025	%  change on prev. year	3 months to Aug 2025	% change on prev. year	12 months to Aug 2025	% change on prev. year
New cars
Value of advances (£m)	970	-1	4,071	4	18,557	9
Number of cars	34,422	-3	141,835	2	648,767	5
Used cars
Value of advances (£m)	1,762	-1	5,537	4	21,548	1
Number of cars	114,003	-5	355,954	0	1,403,832	-2
Total cars
Value of advances (£m)	2,731	-1	9,608	4	40,104	5
Number of cars	148,425	-5	497,789	0	2,052,599	0
Table 2: Cars bought on finance by businesses
New business	Aug 2025	%  change on prev. year	3 months to Aug 2025	% change on prev. year	12 months to Aug 2025	% change on prev. year
New cars
Number of cars	22,023	4	79,527	3	360,750	-1
Used cars
Number of cars	3,865	3	12,914	-26	49,371	-20