The worth of motor finance within the used automotive market is about to fall 2% in 2025, in keeping with the newest forecast from the Finance and Leasing Affiliation. This can be offset by an increase of 5% in worth of recent vehicles offered on finance.
The forecasts have been disclosed because the FLA reported the buyer new automotive finance market by worth in January 14% larger than in the identical month in 2024, whereas new enterprise volumes grew by 9%.
Within the twelve months to January 2025, new enterprise volumes on this market have been 1% decrease than in the identical interval in 2024.
The buyer used automotive finance market reported a fall within the worth of recent enterprise in January of two% in contrast with the identical month in 2024, whereas new enterprise volumes fell by 6%.
Within the twelve months to January 2025, new enterprise volumes on this market have been 2% decrease than in the identical interval in 2024.
Geraldine Kilkelly, director of analysis and chief economist on the FLA, stated: “The buyer new automotive finance market reported a 3rd consecutive month of recent enterprise progress in January.
“In contrast, the buyer used automotive finance market reported an additional single-digit contraction in new enterprise over the identical interval. Each markets noticed progress in common advances in contrast with January 2024.
“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.”
