Dealers saw a 25% increase in consumer finance in January 2013 to 89,426 units, according to the latest figures released by the Finance and Leasing Association (FLA).
Consumer new and used car finance volumes grew by similar rates - up 24% and 25% respectively.
FLA members' penetration of the private new car registrations market in the 12 months to January reached 74.5%, equalling the previous peak reported in August 2013.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: "Today's figures reflect the latest FLA Motor Finance Confidence Survey for Q1 2014 that found motor finance providers remain optimistic about growth in 2014.
“The majority of respondents expect retail motor finance for new and used cars to grow by up to 10% over the next twelve months."