The Finance & Leasing Association (FLA) says this marks a new low, and that lending was 5% down on November 2005.
FLA figures show the used car sector new business volumes were down 13% in November, due to a 15% fall in the number of used cars bought on finance.
Geraldine Kilkelly, FLA’s head of research, says: “Concern over dealer finance continues with this latest set of figures demonstrating that the market remains weak.
“It underlines the urgency for dealers and finance houses to work together to reverse the trend.”
High-street banks, and direct lenders such as supermarkets, are convincing many car buyers to lend from them.
To encourage retail car buyers to talk to dealers about finance, the FLA has set up a consumer-facing website (www.financingyourcar.org.uk) and is developing initiatives including accredited training.