Figures released today by the Finance & Leasing Association (FLA) show the number of new cars bought on finance provided through dealerships grew 6% in May, compared with the same month a year earlier – with average advances to consumers for new car purchases up 4% in May to £16,500 compared with May last year.

As a result, the percentage of private new car sales financed by FLA members through dealerships reached 77.6% in the twelve months to May 2015, a record high.

The point-of-sale consumer used car finance market also showed continued growth, with new business up 8% by value and 3% by volume in May compared with May 2014.

Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“Growth in point-of-sale consumer car finance in 2015 so far has continued in line with expectations. Recent research by Oxford Economics showed the importance of FLA motor finance providers to the UK economy, funding more than 57% of all consumer spending on cars in 2014, up from 35% in 2007.”