London, September 9 (Kiran News) — The Finance & Leasing Association (FLA) has reported a marginal 1% rise in consumer car finance new business volumes in July 2025, compared with the same month last year. The value of new business increased by 4% during the same period.
For the first seven months of 2025, overall new business volumes were also up 1% year-on-year.
New vs. Used Car Finance
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The new car finance market recorded a 2% increase in value and a 1% rise in volumes in July. Across the seven-month period, volumes were up 7% compared to 2024.
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In contrast, the used car finance market saw a 6% growth in value in July, but no change in volumes. Over the same seven-month stretch, used car volumes fell by 2% year-on-year.
Looking at the 12 months ending July 2025:
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Consumer new car finance advanced 10% in value and 5% in volume.
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Used car finance grew 1% in value but dropped 2% in volume.
Overall, consumer finance for both new and used cars combined rose 4% in value and 1% in volume in July. The total value of advances over the past year reached £40.1 billion ($54.36 billion), up 5%, while the number of vehicles financed stayed flat at around two million.
Business Segment Trends
In the business segment:
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New car finance volumes surged 8% in July but were down 4% year-on-year.
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Used car finance faced steep declines, falling 43% in July and 21% over the year, reflecting weaker business demand for used vehicles.
Growing Role of EVs
FLA Director of Research and Chief Economist Geraldine Kilkelly noted:
“The consumer car finance market reported a second consecutive month of growth in July, with 15.5% of new car finance volumes supporting battery electric vehicle (BEV) purchases. Used BEV finance volumes also grew from a low base, reaching 8% in July. Consumer confidence has improved following the Bank of England’s interest rate cut.”
She added that FLA expects the overall consumer car finance market to see a 6% growth in value in 2025, driven by 8% growth in new car finance and 4% growth in used car finance.
Kilkelly also urged customers concerned about repayments to contact their lenders early to explore possible solutions.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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