The number of new cars bought on finance reached 143,135 in September, up 12% year-on-year, according to figures released by the Finance & Leasing Association (FLA). The value of advances for new cars in the month also grew, up 16% to £2,280m.
For the 12 months to September, 880,108 new cars were bought with finance, up 13% year-on-year. The value of advances in this period was £13,716m, up 18% year-on-year. The FLA said the percentage of private new car sales financed by FLA members in this period was 75.8%, a record high.
Finance grew at an even faster rate in the used car sector. 92,247 used cars were bought on finance in September 2014, up 15% year-on-year, while the value of advances grew 23% to £959m in the same month.
For the 12 months to September, 1,028,114 used cars were bought on finance, up 17% year-on-year, while £10,336m worth of advances were done in the period, up 24% year-on-year.
43,919 new cars were bought by business in September 2014, up 28% year-on-year, while the number of used cars bought by businesses actually shrank by 1%, to 3,403 in the month.
For the twelve months to September, 446,794 new cars were bought on finance, up 13% year-on-year on the same period 2013. However the picture was somewhat bleaker for used cars, which fell 34% year-on-year to 42,860 in the same period.
Paul Harrison, head of Motor Finance at the FLA said: "Over £3.2 billion was provided by FLA members to help businesses and households fund car purchases in September. Motor finance is a very competitive market, driven by savvy consumers shopping around to compare deals before visiting their local dealership. Competition keeps prices keen and customer service high."