Figures released by the Finance & Leasing Association (FLA) show a 31% growth in dealer finance in the first month of 2014, compared to January 2013.
The same period also witnessed a growth of 25% in the number of vehicles bough by consumers using dealer finance.
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The FLA data shows £800m in advances were made by FLA members in January, as well as a 24% and 25% growth in new and used car finance volumes respectively compared to the same period last year.
The report also showed FLA members achieved a 74.5% penetration of the private new car registrations market in the twelve months to January 2014.
These figures equal those of the previous peak in penetration, registered in August 2013.
Geraldine Kilkelly, head of research and chief economist at the FLA, commented: "Today’s figures reflect the latest FLA Motor Finance Confidence Survey for Q1 2014 that found motor finance providers remain optimistic about growth in 2014.
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By GlobalData"The majority of respondents expect retail motor finance for new and used cars to grow by up to 10% over the next twelve months," she added.
