Consumer Car Finance Gains 1% Amid Surge in Battery‑Electric Financing

Data from the Finance and Leasing Association indicate that consumer car finance new business volumes rose by 1% in May relative to May 2025. During the same period, the value of new business was 5% higher.

In the first five months of 2026, new business volumes increased by 3% compared with the same period in 2025.

The consumer new‑car finance market recorded an 18% increase in value and a 16% rise in volume in May versus May 2025; for the first five months of 2026, volumes were 16% higher than a year earlier. Conversely, the consumer used‑car finance market saw a 5% decline in both value and volume in May compared with May 2025, with volumes down 3% over the first five months of 2026 relative to the same period in 2025.

Resilience

Geraldine Kilkelly, director of research and chief economist at the FLA, commented: “The consumer car finance market posted another resilient performance in May. Demand for new‑car finance stayed strong, with a quarter of new business volumes linked to battery‑electric vehicles. The used‑car finance segment held steady despite mounting pressure on household budgets and a cautious economic climate.”

Looking ahead, uncertainty surrounding Middle‑East developments could pose risks by influencing energy prices, inflation, interest rates and consumer confidence.

“Despite regulatory and economic challenges, FLA members continue to lead the UK’s shift toward zero‑emission motoring and are well positioned to provide consumers with affordable, sustainable mobility options.”

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