New figures released today by the Finance & Leasing Association (FLA) for September show 12% growth in consumer new car finance, compared with September 2013.
This is the best September performance since the introduction of the twice-yearly release of new registration plates in 2001.
The percentage of private new car sales financed by FLA members in the 12 months to September 2014 increased to 75.8%, a record high.
The consumer used car finance market also saw growth in September, with volumes and values up by 15% and 23% respectively, compared with the same month last year.
Paul Harrison, head of motor finance at the FLA, said: “More than £3.2 billion was provided by FLA members to help businesses and households fund car purchases in September.
"Motor finance is a very competitive market, driven by savvy consumers shopping around to compare deals before visiting their local dealership. Competition keeps prices keen and customer service high.”
Looking at consumer finance new business overall in September, there was a 12% surge compared with the same month last year.
The FLA’s share of the UK consumer credit market increased to 34% in the 12 months to September 2014.
Credit cards and personal loans new business together grew by 6% compared with September 2013. Retail store and online credit was up by 8% in the same period, and point-of-sale finance was up by 18%. Second charge mortgage new business grew 41% by value and 17% by volume.
In 2013 FLA members provided £89.0 billion of new finance to UK businesses and households. £66.6 billion of this was in the form of consumer credit, almost a third of all unsecured lending in the UK. And £27.6 billion of it supported the purchase of new and used cars, including almost three-quarters of private new car registrations.