New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew in March 2025 by 13% compared with the same month in 2024. In Q1 2025, new business in this market was 6% higher than in Q1 2024.

The credit card and personal loans sectors together reported new business in March 10% higher than in the same month in 2024, while the retail store and online credit sector reported a fall in new business of 1% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:

“FLA members reported broad-based growth in March with new business reaching a record monthly total of almost £12 billion. The strong performance in March was in part due to 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.

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”

Source:  FLA