Consumer new car finance grew 31% by value over the first six months of this year, according to the latest figures from the Finance & Leasing Association (FLA).
FLA members’ penetration of the private new car registrations market increased to 73.6%. Year to date growth of 3% in business new car finance is encouraging after a flat year.
Paul Harrison, head of motor finance at the FLA, said: “These continuing healthy figures support a general picture of improving consumer confidence.
“With interest rates set to remain low, there appears to be a positive outlook for consumer demand.”
In 2012 FLA members provided £76.6 billion of new finance to UK businesses and households. £55.1 billion of this was in the form of consumer credit, 30% of all unsecured lending in the UK. And £23.3 billion of it supported the purchase of new and used cars, including more than 70% of private new car registrations.