75,231 new cars were sold on finance in November 2016, 7% more than in November 2015, according to the Finance & Leasing Association (FLA).

The value of the finance was up by 13%, to £1,354m.

As a result of the growing number of cars sold on finance, and shrinking private sales in November, the penetration rate of dealer finance for new cars reached 86.8% for the twelve months to November.

In the used space, 95,158 cars were bought on finance, up 5% year-on-year, for a value of £1,069m, up 8% on November 2015.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The point-of-sale consumer car finance market reported overall new business volumes in the eleven months to November 2016 up by 9% compared with the same period in 2015,  in line with expectations.

“The popularity of POS finance products like personal contract purchase, hire purchase and leasing means that the majority of finance provided to consumers for cars is secured against the vehicle.”