Motor finance achieved its highest recorded share of the private new car sales market for four years in August.
In the last 12 months, 57.9% of people buying new cars used forecourt finance, according to the latest figures from the Finance & Leasing Association (FLA), the trade body for the motor finance industry.
The number of new cars bought on finance was up by 17% in August, and the number of used cars was up by 8%, compared with August last year.
In the new car market the recent sales trends continued. Leasing was up by 38% and personal contract purchase (PCP) by 24% compared with the year before. Use of both forms of credit rose in the used car market.
Paul Harrison, head of motor finance at the FLA, said: “These figures show that forecourt finance continues to be extremely popular. Motor finance has an edge over other purchasing options in current economic conditions as customers are able to negotiate a finance package to suit their budget, whether it is a leasing, PCP, hire purchase or a loan agreement.”