The United Kingdom car loan market size reached approximately USD 62.48 Billion in 2024. The market is projected to grow at a CAGR of 6.40% between 2025 and 2034, reaching a value of around USD 116.19 Billion by 2034.
Base Year
Historical Year
Forecast Year
2.1 million cars were financed by all the existing loan providers in 2021 in the UK.
The average amount spent by Britishers on new car purchases was 25000 pounds.
Automotive financing companies suggested that car loan financing could be used to purchase 23 billion pounds worth of used vehicles in 2023.
Value in USD Billion
2025-2034
United Kingdom Car Loan Market Outlook
*this image is indicative*
Car loans are a financial offering provided by banking companies and government institutions to enable consumers to purchase their vehicle without paying the full price at the time of transfer of ownership. Instead, consumers pay the principal amount of the price along with the interest rate on the loan in periodic installments and gain ownership rights on the vehicle upon completion of the price payment.
The market is being driven by soaring prices of second-hand vehicles and the increasing launches of new vehicles in the UK. With rising inflation, banks are focusing on encouraging consumer savings by putting forth simple terms and conditions for acquiring loans, which is leading to the United Kingdom car loan market development.
Greater preference for used vehicles; availability of multiple car loan financing options; the switch towards the adoption of four-wheelers; and ease of online loan payment are the major trends impacting the United Kingdom car loan market growth.
Britishers are three times more likely to purchase a used car over a brand-new vehicle, especially true for the younger population (aged 18-24 years).
Britishers typically enter into a hire purchase agreement or take a personal/guarantor loan to finance their vehicle purchase, among other options.
Nearly half of all bike owners are planning to purchase their own vehicle in a few years in the United Kingdom.
The increased convenience and flexibility associated with online payment of car loans are expected to boost the market growth.
Personal contract purchase and personal contract hire are some car loan financing options that British consumers choose to finance their new/used vehicle purchases. According to the Financing and Leasing Association of the UK, the demand for car leasing reached a value of 2.33 billion pounds in 2022 and recorded a year-on-year growth of 28% from November 2021. This growth in the popularity of car leasing as a financing option is expected to contribute to the United Kingdom car loan market growth.
The proliferation of digital banking services has contributed to the popularity of car loan financing in the UK. Consumers can gain information about car policies, interest rates, and installment sizes online, which facilitates their decision-making process about vehicle purchases. The ease and high speed associated with making online payments for car loans is also impacting the United Kingdom car loan market demand favourably.
“United Kingdom Car Loan Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Breakup by Vehicle Type:
Breakup by Ownership:
Breakup by Loan Provider:
Breakup by End User:
Individuals are expected to dominate the United Kingdom car loan market share over the forecast period
Individuals are expected to constitute a major market share in the coming years. The younger population of the UK is inclined towards the purchase of used and inexpensive cars, which are older than 5 years. Besides, motorcyclists and bike riders are expected to make a transition to four-wheelers, which is expected to lead to the United Kingdom car loan market expansion in the coming years.
With the emergence of the UK as an attractive destination for doing business and the expansion of its warehousing and logistics industry, the demand for commercial vehicle financing is also expected to register a significant growth in the coming years.
Major market players are focusing on designing fair terms and conditions for loan seekers in the UK
| Bank Name | Year of Incorporation | Location | Services |
| Barclays PLC | 1690 | London, United Kingdom | Consumer banking, corporate banking, and investment banking |
| BNP Paribas S.A. | 2000 | Paris, France | Retail Banking & Services, and Corporate Institutional Banking |
| Santander UK plc | 1988 | London, United Kingdom | Retail banking, and corporate and commercial banking, along with investment banking services |
| Lloyds Bank plc | 1765 | London, United Kingdom | Wide range of financial services for commercial and retail consumers |
Other players in the United Kingdom car loan market include Bayerische Motoren Werke AG (ALPHERA Financial Services), JBR Capital Ltd., Close Brothers Group plc, Tandem Bank Limited, Royal Bank of Scotland plc, and Nationwide Building Society, among others.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2024, the market reached an approximate value of USD 62.48 Billion.
The market is estimated to grow at a CAGR of 6.40% between 2025 and 2034.
The market is estimated to witness a healthy growth in the forecast period of 2025-2034 to reach a value of around USD 116.19 Billion by 2034.
The market is being driven by soaring vehicle prices, increasing four-wheeler demand, and fair terms and conditions that encourage consumer savings.
The key trends aiding the market expansion include greater preference for used vehicles, availability of multiple car loan financing options, the switch towards the adoption of four-wheelers, and ease of online loan payment.
The major car loan providers include banks, OEM, and NBFCs.
The major end users of car loans include individual and enterprise.
The major players in the market are Barclays PLC, BNP Paribas S.A., Bayerische Motoren Werke AG (ALPHERA Financial Services), Santander UK plc, Lloyds Bank plc, JBR Capital Ltd., Close Brothers Group plc, Tandem Bank Limited, Royal Bank of Scotland plc, and Nationwide Building Society, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2024 |
| Historical Period | 2018-2024 |
| Forecast Period | 2025-2034 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Vehicle Type |
|
| Breakup by Ownership |
|
| Breakup by Loan Provider |
|
| Breakup by End User |
|
| Market Dynamics |
|
| Competitive Landscape |
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| Companies Covered |
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United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Australia
63 Fiona Drive, Tamworth, NSW
+61-448-061-727
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-723-689-1189
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.
+63-287-899-028, +63-967-048-3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84-865-399-124
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