Figures released by the Finance & Leasing Association (FLA) show that business in the point of sale (POS) consumer new car finance market grew 15% by value and 10% by volume in May, compared with the same month in 2017.

The percentage of private new car sales financed by FLA members through the POS was 89.3% in the twelve months to May 2018, showing no change compared with the same period to April 2018.

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The POS consumer used car finance market also reported new business growth in May 2018, of 12% by value and 9% by volume.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “Monthly falls in new business volumes reported by the consumer new car finance market in the first three months of 2018 have been followed by a recovery in April and May, in line with demand for new car purchases.

“The POS consumer car finance market reported new business volumes overall up by 4% in the first five months of 2018, consistent with expectations for the year as a whole.”

The latest figures are not as steep as the growth for April. In that month new business in the point of sale (POS) consumer new car finance market grew 31% by value and 27% by volume, compared with the same month in 2017.

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There was also improvement in car registrations for May 2018. There were 192,000 car registrations for the month, a 3.4% rise over last year’s figures. There have been falls for both June 2018 and the 2018 as a whole by year-on-year comparison.

In 2017, FLA members provided £128bn of new finance to UK businesses and households. £96bn of this was in the form of consumer credit, and 44bn of it supported the purchase of new and used cars, including over 88% of private new car registrations.