Almost 85% (84.3%) all new cars bought in the twelve months to May were bought on finance, after strong growth in the month, according to figures released by the Finance & Leasing Association (FLA).

79,676 cars were bought on finance in that month, an 8% increase compared to May 2015. The total value of this finance was £1,385m, up 14% on the same month in 2015.

The used car market grew even more rapidly. 110,031 used cars were sold on finance, up 18% year-on-year. The value for the used car finance advanced increased 22% to £1,189, for the same period.

For the 12 months to May, both the new and used markets saw double digit finance growth.

The number of used cars bought over this period increased 12% to over just over 1m (1,032,995), while the number of used car vehicles increased 11%, to 1,206,679.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: "The POS consumer car finance market continued to report robust growth in May, as new business volumes overall grew by 14% compared with the same month in 2015. New business volumes in these markets in the first five months of 2016 grew at a similar rate."