New figures from the Finance & Leasing Association (FLA) reveal a 2% decline in consumer car finance new business volumes in February 2025 compared with the same month in 2024. 

Despite this, the value of new business increased by 5% over the same period.

The consumer new car finance market saw a rise in February 2025, with new business by value up 19% and volumes up 17% compared with February 2024.  

For the first two months of 2025, new business volumes in this market were 11% higher than the same period in 2024. 

Conversely, the consumer used car finance market experienced a 1% decrease in the value of new business in February 2025 compared to February 2024, with new business volumes falling by 7%.

For the first two months of 2025, new business volumes in this market were 7% lower than in the same period in 2024.

FLA director of research and chief economist Geraldine Kilkelly said: “The consumer new car finance market continued to grow in February supported in part by consumers bringing forward purchases to get ahead of the hikes in vehicle excise duty from April. The consumer used car finance market reported another month of lower new business volumes, but both markets continued to see growth in average advances.

“The US administration’s tariff hikes have weakened an already soft economic outlook. Uncertainty about jobs and higher inflation in the coming months are likely to weigh further on consumer confidence and spending. Our latest research suggests the value of new business provided by the consumer car finance market will grow by 1% in 2025, with growth of 5% in the consumer new car finance market offset by a 2% fall in the consumer used car finance market.”

In January 2025, consumer car finance new business volumes decreased by 3% compared with January 2024, while the corresponding value of new business grew by 4%.

Over the 12 months leading to January 2025, new business was 2% lower by volume compared to the same period in 2024.