Business volumes and values for finance on both new and used cars were up by double-digit percentages compared to the year before in August, according to the Finance & Leasing Association (FLA).

Despite August being a relatively quiet month for car registrations ahead of the latest licence plate release in September, finance on new cars was up 20.25% by volume to 41,029 units and up 31.17% by value to £606m. Finance on used cars was up 17.14% by volume to 79,215 units and up 21.18% by value to £755m.

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FLA members’ penetration of the private new car market for the 12 months to the end of August 2013 stood at 74.5%, a rise of 0.4ppts from July’s figure and the 29th consecutive month to register an increase.

By agreement

In particular, PCP agreements were worth £432m on new cars, a rise of 54% year-on-year, and worth £198m for used cars; a rise of 46%.

Hire purchase (HP) was up 1% by value in the new market to £124m and by 21% to £485m in the used market.

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The trend follows similar findings by Experian’s Automotive division in July, which posited PCP had risen 77.33% over a two-year period.

However, both PCP and HP were up in used and new during Q2, with personal loan, lease and credit sale falling across the two combined markets, according to the credit reference agency.

richard.brown@timetric.com