Point-of-sale loans for new cars to retail buyers remain above 50% as a gradual recovery over many months continues, according to data from the Finance & Leasing Association.

In the 12 months to November dealers accounted for 51.5% of the total market – 0.7 percentage points higher than October’s figure. Advances for new cars in the same period amounted to £6.478 billion (to assist 509,918 purchases), a 17% increase.

Loans totalling £485 million in November were 6% down year-on-year.

There was also a 3% decline in total new car loans in the three months to November, to £1.97bn.

POS advances on used cars totalled £5.907bn in the year to November, an 8% increase.

Paul Harrison, FLA head of motor finance, said dealers and lenders would this month discuss the implementation of CCD (the EU consumer credit directive) from February 1.

Black Horse has produced guidance on motor credit advertising. Under CCD there are new and in some cases tougher laws to control advertising.

Over the coming months the Office of Fair Trading will consider various phrases used in retail finance ads and announce any that should not be used.

Motor finance lenders and dealers are hoping for clarity as soon as possible.