Despite slowing private registrations in September, the amount of finance sold for new cars grew in September, according to the Finance & Leasing Association (FLA).

The number of new cars bought on finance increased 3% year-on-year to 161,301, in September. The value of advances increased 9% over this period, to £2,871m

As a result of growing finance numbers and slowing registrations, the penetration rate of finance continued to edge up – reaching 86.2% for the twelve months to September, up from 85.5% in the twelve months to August.

There was also growth in the used car market. 107,263 used cars were bought on finance, 5% more than in September 2015, with £1,177m worth of advances, up 8% year-on-year.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The POS consumer car finance market continued to grow in line with expectations in September. This contributed to strong single-digit new business volumes growth of 9% in the first nine months of 2016.”

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