The Finance & Leasing Association (FLA) has reported an 11% increase in consumer car finance new business volumes for March 2025 compared to the same month in 2024.
The association said that corresponding value of new business rose by 18% during the same period.
In the first quarter (Q1) of 2025, new business volumes were 3% higher compared with Q1 2024.
The consumer new car finance market reported a 25% increase in new business value in March 2025 while volumes grew by 21%.
During Q1 2025, new business volumes in the consumer new car finance market were 16% higher than the same period last year, the report said.
Meanwhile, the consumer used car finance market saw a 9% increase in the value of new business in March 2025 compared with March 2024, with volumes growing by 3%.
However, in Q1 2025, new business volumes in the consumer used car finance market were 3% lower than in Q1 2024.
FLA’s research and chief economist director Geraldine Kilkelly said: “March saw the consumer car finance market report its strongest rate of growth in more than three years supported by the issue of a new registration plate, consumers bringing forward new car purchases ahead of increases in vehicle excise duty from April 2025, and slightly more working days in March 2025 than in the same month in 2024 due to the timing of Easter.
“The outlook remains uncertain, with the latest indicators of consumer confidence showing a significant downturn in sentiment about economic conditions. Further cuts in interest rates should help to ease some of the pressure on real household disposable incomes.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
In February 2025, consumer car finance new business volumes declined by 2% compared with February 2024, despite a 5% increase in the value of new business.
The consumer new car finance market experienced a rise in February 2025, with new business value and volumes increasing by 19% and 17%, respectively, compared to February 2024.
“UK consumer car finance registers 11% growth in March 2025: FLA” was originally created and published by Motor Finance Online, a GlobalData owned brand.
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