Volume for consumer new cars finance was down 7% year-on-year in July, while used car finance saw a jump of 17%, Finance Leasing & Leasing Association (FLA) figures have shown.
As a result, the percentage of private new car sales financed by FLA members held steady at 86.0% in the twelve months to July.
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Though the number of new contracts sold in the new car market fell, the value of advances rose by 3%, year-on-year.
Lending for used cars, meanwhile, saw a jump of 10% in volume.
Financing for businesses in the same period saw a noticeable gap between new and used car markets, with the former falling 2% and the latter booming 60%.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The fall in consumer new car finance business volumes is consistent with recent trends in private new car registrations, and FLA members’ penetration of this market remains stable.”
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By GlobalDataShe added: “While the recently announced scrappage schemes may provide some boost to private new car sales in the coming months, the industry expects POS consumer car finance new business volumes to be broadly stable in 2017 overall.”
