According to figures released by the Finance & Leasing Association (FLA), the annual March plate change led to a record-breaking rise in UK motor finance.

Year-on-year, consumer new car finance volumes were up by 21% in March, while the used car finance market registered its strongest growth for 2014 at 29%.

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Samantha Cripps, head of sales development at motor finance provider Alphera, described the growth as "very positive news for the industry", and a sign of a strengthening economy.

"We expected an increase during the month of March," she said, "when there is a plate change, and we are not surprised to see these record-breaking figures.

"Motorists are attracted to forecourts by new models, the latest technologies and competitive finance packages."

"While this surge in motor finance shows a very healthy outlook, it is vital to keep in mind that when there is a plate change there is an increase in demand and so figures are likely to be higher than usual," she added.

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Although acknowledging the importance of ongoing relationships between dealers and finance companies to maintaining the offering of "flexible and innovative" finance services to customer, Cripps warned of the importance of a continued focus within the industry on "affordable and sustainable lending" to enable continued growth.

"It is important for dealers to continue to work with their finance companies, to continue momentum in sales and ensure that they are able to offer flexible and innovative finance packages to continue to attract customers."