Finance provided for new car purchases overall in 2005 remained at a similar level to 2004. However, by volume, new business grew by 6% over the same period.

The Finance and Leasing Association (FLA) released its latest figures today, which also showed used car finance last year was down slightly on 2004 by 1%. The volume of used cars financed increased by 4%.

The FLA said: “The reduction in new car volumes was driven primarily by a contraction in finance provided via dealerships to consumers.”

New business		Dec 2005		% change		12 mths to Dec 2005		% change
Finance provided (£m)
New cars		900		6%		11,952		0%
Used cars		395		-5%		6,669		-1%
Cars financed (No.)
New cars		71,664		-3%		1,024,533		-6%
Used cars		42,155		-8%		746,969		-4%