Point-of-sale finance on new cars continues to run well below the 50%-plus penetration previously achieved, Finance & Leasing Association data shows.

The penetration average for the year to March of 46% compares with 53.9% in the previous 12 months. Dealers’ share was 45.8% in 2009 and 57.2% in 2008.

But POS finance grew sharply in March alongside the rise in sales of new cars, boosted by scrappage.

FLA data shows dealers’ advances totalled £1.146 billion on 95,397 units (a 46% year-on-year increase) with first quarter POS loans of £1.721bn (36% higher) on 146,436 cars (38% up).

In the year to March POS loans on new cars were £6.248bn (11% up year on year) on 505,540 cars (10% up).

Used cars did less well.

Dealer advances in March totalled £607 million (up 12%) and those for the first quarter were £1.510bn (6% better), but POS loans on used stock in the year to March were 8% lower at £5.568bn.