The number of new cars bought on finance continues to grow strongly, largely due to the deals offered by lenders in car showrooms. The industry provided more than £9 billion of finance for consumers to buy more than 650,000 new cars in the 12 months to November 2012, a 34% increase in value on the same period a year earlier, an increase of more than £2 billion.
The FLA’s latest statistics also show that 70.8% of all private new cars sold over the previous 12 months were funded by showroom finance. PCP agreements now account for 63% of total new agreements by value.
Paul Harrison, head of motor finance at the Finance and Leasing Association said: “These figures show continued strong growth in the new car market as incentivised deals continue to make new car prices attractive for buyers. Those incentives are available across the full range of finance products including hire purchase, leasing and personal contract purchase.
“Motor finance companies have provided drivers with an extra £2 billion of finance in the last 12 months allowing thousands more people to drive away from the showroom in a new car.”