The number of new cars bought on finance in January rose 3% year-on-year to 61,650, according to the Finance & Leasing Association (FLA).

This represented £1,085m worth of advances, 9% more than in January 2015.

As a result of the slow growth, the percentage of private new car sales financed by FLA members through the POS fell to 86.5% in the twelve months to January, down from 86.6% in the twelve months to December 2016.

For the twelve months to January, growth was quicker. Just over 1m cars sold on finance represented a 6% increase in volume compared to the previous period, while £18,175 worth of advances represented an 11% growth

There was faster growth in the used space in January, where 114,506 cars bought on finance represented a growth of 9% over the same period, while the value of advances grew 15% to £1,261m.

For the twelve months to January 2017, the number of used cars sold on finance increased 9% compared to the 12 months to January 2016 to 1.26m, and the value increased 12% to £13,727m.