The total number of cars bought through dealerships on finance grew 7% year-on-year in August, according to figures released by the Finance and Leasing Association (FLA).
The 7% growth rate was true of both new and used cars, which grew to 43,726 and 85,314 cars sold respectively.
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However figures from the Society of Motor Manufacturers and Traders (SMMT) for August showed that new car sales grew 9.4% year-on-year, indicating that growth in finance failed to keep pace with the growth in car sales.
In terms of value of the finance the used car market grew more rapidly. The total value of advances for used cars bought on finance was £858m in August, up 13% compared to August 2013.
In comparison, the value of advances for new cars in August was £661m, up 9% compared to the same month in 2013.
For the 12 months to the end of August, 864,535 new cars were bought on finance, up 14% on the 12 month period preceding it. The FLA said this meant the percentage of private new car sales financed by its members was 75.2%. The value of advances for 12 months to the end of August grew 20%, to £13,403m.
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By GlobalDataA total of 1,016,415 used cars were bought on finance in the same period, up 18% year-on-year. The value of advances for used car in the 12 months to August was £10,156m, up 25% on the year before.
Increasing business confidence was reflected in the number of both new and used cars bought on finance, which grew 30% year-on-year to 33,328 and 22% year-on-year to 2,863 respectively.
