New car finance value rose 36% across 2012, driven by an increase in the percentage of private new car sales financed by members of the Finance and Leasing Association (FLA).
The total value of finance on new cars rose by 36% year-on-year to £9.41bn; corresponding to a 27% increase in the number of new cars financed, up by 140,000 to 662,052 sales.
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The proportion of new car registrations bought on finance supplied by FLA members rose from 63.5% in 2011 to 71.2% in 2012, with December’s figure marking the 21st consecutive month of growth for the rolling total.
Overall new and used car sales on finance rose 14% by volume from 1.67m to 1.91m vehicles. Consumer used car sales for 2012 grew 8% by both volume and value compared to 2011.
Meanwhile, December’s figures showed 29% year-on-year growth by value, and 23% growth by volume, for new cars sold on finance to retail customers. Used cars on retail finance were up 16% by value and 10% by volume.
Paul Harrison, Head of Motor Finance at the FLA, said: "These figures show that customers want good value deals and are finding them. The number of cars financed by FLA members is at its highest level since before the start of the recent financial crisis.
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By GlobalData"The factors underpinning consumer confidence in motor finance seem likely to continue. And a quarter of all showrooms are now approved under the FLA’s Specialist Automotive Finance initiative, which helps ensure high levels of understanding of the finance options available to customers."
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