Two-thirds (66.6%) of new cars bought at retail by private consumers were purchased on finance in the 12 months to April, up from 65.9% in March, according to the Finance & Leasing Association.

March, in turn, saw a rise from 64.5% finance penetration for new cars in the year to February, up from 63.5% in January, and so on, stretching back to the last dip in the trend recorded in February 2011.

Year-on-year, April saw 41% growth in the value of private new car finance, to £709m, and 29% growth in volume to 49,709 units. Value also grew by more than volume in new car finance in the three months to April – value up 34%, volume up 23% – and the12 months to April, up 17% and 11% respectively, all compared to the relevant periods of the previous year.

The value of consumer used car finance also rose in April, by 12%, with £600m lent, while volume rose by 17% to 66,240 units. As opposed to new, consumer used car finance saw volume rise faster than value in the three-month and 12-month periods to April.

Hire purchase accounted for 64.6% of all used car finance taken by consumers in the 12 months to April, ahead of PCP (20.8%), unsecured personal loans (14.3%) and leases (0.3%).

DATED: 11.06.12

FEED: MF