The consumer new car finance market surged in March with sales brought forward due to changes in vehicle excise duty and a later Easter.
The consumer new car finance market reported new business by value in March 25% higher than in the same month in 2024, while new business volumes grew by 21%, according to figures from the Finance & Leasing Association.
In Q1 2025, new business volumes in this market were 16% higher than in Q1 2024.
The consumer used car finance market reported the value of new business in March 9% higher than in the same month in 2024, while new business volumes grew by 3%.
In Q1 2025, new business volumes in this market were 3% lower than in Q1 2024.
Geraldine Kilkelly, director of Research and Chief Economist at the FLA, 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.
