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Motor finance trade body the Finance & Leasing Association said the motor finance sector was performing well despite the tough outlook.
Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said the market was proving resilient.
“The UK economy now faces a more challenging outlook, as the conflict in the Middle East is likely to weigh on activity, confidence and financial conditions,” she said.
“Nevertheless, recent trends in motor finance suggest a degree of underlying resilience, with the market continuing to support consumer demand despite significant ongoing economic uncertainty.”
Kilkelly made her comments as the FLA published the latest motor financed data for the UK.
The consumer new car finance market reported new business up 16% by value and 15% by volume in February compared with the same month in 2025.
In the first two months of 2026, new business volumes in this market were 14% higher than in the same period in 2025.
For used cars, the value of new business in February at a similar level to the same month in 2025, while new business volumes fell by 1%.
In the first two months of 2026, new business volumes in this market were 3% lower than in the same period in 2025.
“The consumer new car finance market recorded a sixth consecutive month of growth in February, with new business volumes reaching their strongest February level since before the pandemic.
“At the same time, the used car finance market continued to show a broadly stable year on year performance,” she said.
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