The number of new cars bought on finance jumped 13% year-on-year in July to 70,444, according to the Finance & Leasing Association (FLA).
The total value of the advances for the month was up 17% year-on-year, to £1,160m.
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As this was above the 3.2% new car sales registered by the Society of Motor Manufacturers and Traders (SMMT) in July, the penetration rate also increased. Whereas 78.1% of car bought for the 12 months to June involved finance, the penetration rate reached 78.7% for the 12 months to July.
Used car finance grew at a slower rate. The number of used cars bought on finance in the month increased by 9% year-on-year to 102,322. The value of these advances reached £1,084m, up 14% compared to the same month in 2014.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: "The point-of-sale consumer car finance market has continued to grow in line with expectations. With the latest new car registrations for August suggesting robust growth in demand, we expect new car finance volumes to continue to grow over the coming months."
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