2026
9
UK Car Finance Market Report 2026
2026-07-23T08:01:09+00:00
REPB560612D_AA80_493A_A061_2DAA80193A62
2195
194932
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Report
en_GB
An overview of UK point-of-sale consumer car finance, analysing market sizing and outlook, product types, consumer behaviour and channel use, regulatory and trust considerations, and innovation themes to support proposition,…
UK
Automotive
Financial Services
simple

UK Car Finance Market Report 2026

An overview of UK point-of-sale consumer car finance, analysing market sizing and outlook, product types, consumer behaviour and channel use, regulatory and trust considerations, and innovation themes to support proposition, journey and risk-management decisions.

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  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for car finance – UK
    • Opportunities
    • Transparency as a service
    • Retention is the next frontier for growth
    • Affordability takes the wheel
  2. THE MARKET

    • Snapshot – market size and forecast
    • Inflation strains household budgets
    • Graph 1: CPI inflation rate, 2021-26
    • Navigating the car finance market amid high interest rates
    • In the driving seat: how consumer confidence is steering the car finance industry
    • Graph 2: consumers’ financial confidence over the next year, 2026
    • FCA car finance redress scheme faces legal pressure as millions await compensation
    • Car finance lending surpasses £41 billion in 2025
    • Graph 3: value of car finance contracts sold at the point of sale, 2021-25
    • Graph 4: volume of car finance contracts sold at the point of sale, 2021-25
    • Average car finance advance continue to rise
    • Graph 5: average advance for consumer car finance contracts sold at the point of sale, 2005-25
    • Car finance market set for growth
    • Graph 6: market value forecast for Car Finance, 2021-31
    • Steady growth despite near-term hurdles
    • Car finance volumes are projected to increase modestly
    • Graph 7: market forecast for car finance contracts sold at point of sale – volume, 2021-31
    • New car finance plans increase for the first time since 2021
    • Graph 8: new car finance plans, 2016-25
    • Graph 9: used car finance plans, 2016-25
  3. THE CONSUMER

    • Method of acquiring a car and financing used
    • One in five report buying their car on finance
    • Graph 10: method of acquiring current car, 2026
    • Salary sacrifice gains traction
    • PCPs reign supreme: the UK’s go-to car finance option
    • Personal contract plans: the preferred way to finance a car
    • Graph 11: use of car finance products, 2024-26
    • Purchase channel and purchasing intentions/methods
    • Dealerships dominate UK car finance
    • Convenience is driving consumer choices
    • Intended purchase method: the car buying dilemma
    • Graph 12: intended purchase method for the next car in the next five years, 2026
    • Factors impacting choice of a car finance product
    • Price over passion: low monthly payments drive car finance choices
    • Monthly cost outweighs every other finance factor
    • Car finance is an aspiration enabler
    • Attitudes towards car finance
    • Satisfied yet sceptical: the car finance trust divide
    • Satisfaction is high but there is an opporunity to build trust
    • Graph 13: consumer attitudes towards car finance, 2026
    • How car finance can drive higher customer satisfaction
    • The trust deficit behind car finance satisfaction
    • Car buyers are looking for proof
    • Graph 14: consumer attitudes towards car finance – I trust that car finance lenders/car dealers act in the customers’ best interests, by age, 2026
    • Proof, not promises: how car finance providers can win back trust
    • Provide confidence to cautious consumers
  4. INNOVATION AND MARKETING

    • Fintech innovations: iVendi and Codeweavers launch new tools to streamline car financing
    • CarMoney and iVendi join forces to accelerate vehicle finance approvals
    • Fastcheck unveils real-time finance platform
    • Carmoola positions pre-approved finance as a confidence play
    • Close Brothers collaborates with Pod Point to power up dealer EV charging
    • Carplus and Marshmallow partner to improve car finance access for UK newcomers
    • New iVendi tool simplifies VAP funding for car dealers
  5. APPENDIX

    • Report scope and definitions
    • Products covered in this Report
    • Product definitions
    • Product definitions (continued)
    • The market
    • PCP continues its grip in new car financing
    • Graph 15: value of new agreements for new cars, proportional distribution of consumer car finance by product type, 2022-25
    • The great used car finance divide
    • Graph 16: value of new agreements for used cars, proportional distribution of consumer car finance by product type, 2022-25
    • Forecast methodology
    • Forecast methodology – fan chart
    • Other sources
    • Market forecast: value
    • Market forecast: volume
    • The consumer
    • Consumer research questions
    • Consumer research methodology
    • Abbreviations and terms
Download Report Summary

"Consumers expect transparency and fair value. As FinTech and EV growth accelerate, trust is vital to win cautious buyers."

Utku Tansel, Senior Retail Analyst

Utku Tansel, Senior Retail Analyst

Report Coverage (at a glance) 

  • Consumer point-of-sale car finance in the UK, focused on agreements sold via car retail channels. 
  • Core product types within scope, including HP, PCP and PCH/leasing, plus related POS lending/loan structures captured in industry datasets. 
  • Market sizing and outlook coverage, using Mintel forecasting and scenario intervals grounded in historical market data and macro drivers.  
  • Consumer attitudes, behaviours and decision drivers, underpinned by Mintel-commissioned survey research (sample, timing and eligibility defined).  
  • The role of regulation and conduct scrutiny shaping commission practices and disclosure expectations in the category. 

Key Insights Featured in this Report

  • How consumers interpret and navigate car finance terms, including clarity needs and perceived complexity. 
  • What consumers seek from car finance propositions across affordability, payment structure and end-of-term considerations. 
  • Which factors influence trust in lenders/dealers, including historic mis-selling context and expectations of proof/validation. 
  • Where opportunities sit in supporting EV adoption through finance-led enablers (eg schemes and bundled ecosystem add-ons). 
  • How the category is evolving through digital finance journeys, including pre-qualification and configurable comparison experiences. 
  • How consumers’ channel preferences shape finance acquisition routes, including dealership-led and direct/provider options.  

How this Report Supports Your Strategy

  • Quantifies category direction to inform planning assumptions, budgeting and portfolio prioritisation.  
  • Guides product design choices across agreement types and configurable deal structures.  
  • Supports customer journey optimisation decisions across digital tools, pre-approval and comparison experiences.  
  • Informs trust, conduct-risk and disclosure planning aligned to regulatory scrutiny and commission transparency requirements. 
  • Helps size and shape EV-related partnerships and proposition components tied to the EV transition.

Who this Report is For

  • Lenders and motor finance providers shaping product, pricing architecture and digital origination journeys.
  • Dealership groups and OEM retail teams managing POS finance experience, channel strategy and conversion levers.
  • Compliance, risk and legal teams tracking conduct themes (mis-selling context, disclosure expectations, contract clarity).
  • Marketing, CX and insights teams refining messaging around affordability, trust and decision support.
  • Fintech, platform and partnership teams evaluating the role of pre-qualification, lender switching and comparison tooling.

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