Year-on-year increases in showroom loans’ share of new car motor finance continue to gather, according to the Finance & Leasing Association.
In February it reached a record 71.9%, up from January’s 71.6%. Hire purchase accounted for 48%, followed by PCP (42%), personal loans (7%) and leasing (2%).
Showroom finance rose 42% to be worth £478 million and was used to buy 33,995 new cars (up 31%).
Paul Harrison, FLA head of motor finance, said: “The new car finance market was strong in February and again out-performed the growth in new car registrations. ”
In the three months to February showroom loans totalled £1.724 billion (a 33% increase) and bought 118,226 new cars (27% up).
There was a slightly bigger gain (28%) to drive the total of 679,429 new cars acquired through dealers in the year to February.
The value of advances was £9.696bn, a 36% improvement over the year.
Used car advances up 11%
Increases in volumes on used cars bought on finance by private drivers continue to be more subdued.
In February the value of loans (£666 million) was 11% higher year-on-year, and the total of 71,544 used cars was 7% up.
Over the three months the increase was 12% (to £1.793 billion). That was on 189,875 used cars, a year-on-year rise of 7%.
In the 12-month period advances of £7.398bn were 8% better on 796,583 units (up 7%).
4% dip in business car sales
The total of 20,149 new cars bought by businesses on loans through dealers in February was 4% down year-on-year.
There were, though, longer-term gains, by 1% to 81,495 in the rolling three months, and 4% to 398,000 in the 12-month period.