UK Car Finance New Business Grows 8% in March 2026
💡 Key Takeaway
FLA figures show UK consumer car finance new business up 8% by volume in March 2026, with new car lending leading a strong Q1. What it means for buyers.
The UK car finance market is in better shape than the headlines might suggest. Fresh data from the Finance & Leasing Association (FLA) shows lending is firmly back on the front foot. 📈
For buyers weighing up a deal this summer, the numbers tell an encouraging story about confidence, availability, and competition. Here's the breakdown.
The Headline Numbers
Consumer car finance new business volumes grew by 8% in March 2026 compared with the same month a year earlier. The value of that new business was 11% higher over the same period.
Step back to the whole quarter and the picture holds up. Across Q1 2026, new business volumes were 4% ahead of Q1 2025.
That's a market gaining momentum, not stalling. 💪
New Cars Leading the Way
The strongest growth came from the new car side of the market. Consumer new car finance new business was up 14% by volume and 15% by value in March, year on year.
That tracks with what we're seeing on forecourts — strong electric vehicle demand and attractive manufacturer offers pulling buyers toward brand-new models.
When more drivers fund new cars, it usually signals healthy lender appetite and competitive rates worth shopping around for.
Used Cars Holding Firm
The used car finance market was steadier but still positive. New business volumes grew by 2% in March, with value up 4% year on year.
Given how large and price-sensitive the used market is, steady growth here is a sign of resilience. Used demand remains strong even as average prices firm up.
For buyers, that means lenders are still actively competing for used-car finance business — good news if a nearly-new model fits your budget. 🚗
Why This Matters for You
A growing finance market isn't just an industry statistic. It has real effects on the deal you can get:
- More lender appetite tends to mean more competitive APRs
- Higher approval activity can widen the range of products on offer
- Confidence in the market supports manufacturer deposit contributions and subvented rates
In short, a market that's lending more is a market that wants your business. That's a strong position for buyers to negotiate from. ✅
Making the Most of a Strong Market
Momentum is helpful, but the right deal still comes down to your circumstances and the lender match. A few percentage points on APR makes a real difference over a typical agreement.
That's where a broker earns its keep. Rather than approaching one lender and hoping, you compare across a panel to find the rate that fits.
💡 With the FLA pointing to a market that's growing — and lenders keen to write business — this is a sensible moment to review your options.
Talk to We Finance Your Asset
Based in Reading, Berkshire, We Finance Your Asset helps drivers across the UK take advantage of a competitive market. We match you with the right lender for your situation, new car or used.
Thinking about funding your next car? Get in touch for a no-obligation, soft-search quote and see what today's market can do for you.
Figures: Finance & Leasing Association (FLA) consumer car finance data, March 2026.