How we finance and choose to pay fuel costs for our cars is changing say providers.
As 2026 approaches, the UK used car market is set for another year of change. According to industry data from the SMMT, used EV transactions rose by 57% year-on-year in 2024, outpacing every other fuel type.
Meanwhile, upcoming policy changes, including the end of electric vehicle tax exemptions in April 2025, could reshape how and where drivers choose to buy and finance cars.
Louis Rix, motoring expert at CarFinance 247, shares three key trends expected to define the 2026 car finance landscape:
- Used electric cars will keep climbing, but affordability will test buyers
Electric and hybrid models are expected to continue taking share in the used car market, with a 24% increase in EV applications already recorded in 2025, according to Car Finance 247 internal data. However, with road tax and luxury EV levies coming into force from April 2025, buyers may become more price-sensitive. The result? Steadier growth in used EV purchases, but slower uptake among first-time or budget-conscious buyers. - Regional car finance growth is outpacing London
New data from CarFinance 247 shows car finance applications are rising fastest in the North West and North East, signaling that demand is booming outside the capital. In 2024, the North West accounted for a significant 11.9% of UK new car sales, reflecting its status as a major economic hub, while the North East, despite a smaller population, has seen the biggest long-term growth in car ownership per household, up 19% between 2003 and 2023. These trends show that regional buyers are increasingly driving the market. - New entrants are reshaping the finance landscape
With more new lenders entering the market, there’s a good opportunity for fresh competition. According to Louis Rix, these new entrants can hit the ground running with a clean slate, unencumbered by the historic challenges of incumbent lenders. Combined with tighter risk models, tiered interest rates, and greater focus on affordability rather than credit scores alone, these shifts could make it easier for drivers to access fairer finance deals.
The fuel card market continues to expand, with the UK industry now valued at £108.3m and comprising an estimated 46 providers.
Right Fuel Card’s latest internal research indicates the sector is evolving rapidly as hybrid and EV fleets grow and digitalisation becomes more important for fleet operators.
According to the findings, 40% of fuel card users identify as self-employed, highlighting the appeal of streamlined fuel management for freelancers and small business owners.
A further 39% of users come from firms employing fewer than ten staff, with only 8% belonging to companies with more than ten employees.
Right Fuel Card said this reflects the importance of fuel cards to smaller businesses where cashflow and cost control are critical.
The research also found that 37% of businesses increased their fuel usage in 2025, with 27% citing mileage changes as the main reason.
Nearly half of firms spent under £500 a month on fuel this year, while 32% spent between £501 and £1000.
Rising operating costs, including fuel price fluctuations, mean these spending patterns may shift in 2026.
Right Fuel Card also looked at sector usage, finding that agriculture and forestry workers made up 8% of cardholders and construction workers 14%.
Transportation and storage dominated, accounting for 32% of all users, reflecting its heavy dependence on fuel for fleets of vans, trucks and delivery vehicles.
The research highlighted growing interest in electrification, with 43% of customers saying cost savings would incentivise them to invest in EV fleets, and 37% saying cheaper vehicle prices would encourage a switch.
