The UK car finance market saw 8.9% year-on-year growth in the first half of 2026, with 3.13 million finance agreements being written.
That’s according to data from Solera Cap HPI’s Market Eye database, which revealed a particularly strong start to the year for new car finance, for which 1.29 million agreements were written – a 19.5% year-on-year increase. This included 234,126 agreements in June – 15.8% year-on-year growth – and 333,031 agreements during March, the highest monthly figure seen for the past two years.
Solera Cap HPI said its data suggested this was a sustained long-term recovery rather than a short-term burst, with its rolling 12-month average having risen every month since February 2025, marking 17 consecutive months of growth.
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As for the used car finance market, this is reported as steady, with 1.84 million agreements during the first half of the year, representing 2.5% year-on-year growth.
The rolling 12-month average for the overall market has now reached 495,575 agreements, up by 6.7% year-on-year.
Market has ‘strong momentum’
Chris Wright, regional vice president at Solera, said: “The finance market entered the second half of the year with strong momentum. The recovery in new car finance is now well established, while the used market continues to demonstrate the consistency that has underpinned the industry for several years.
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“Competitive manufacturer finance offers, improving vehicle availability, and growing consumer confidence are helping to support demand for new cars, while used vehicle finance continues to provide the scale and stability the market depends upon.
“Total finance agreements are now approaching a rolling average of half a million a month, and the outlook remains encouraging. The challenge for lenders and retailers will be ensuring finance products continue to meet changing consumer affordability requirements as competition across the new car market remains intense.”