Despite slowing private registrations in September, the amount of finance sold for new cars grew in September, according to the Finance & Leasing Association (FLA).
The number of new cars bought on finance increased 3% year-on-year to 161,301, in September. The value of advances increased 9% over this period, to £2,871m
As a result of growing finance numbers and slowing registrations, the penetration rate of finance continued to edge up – reaching 86.2% for the twelve months to September, up from 85.5% in the twelve months to August.
There was also growth in the used car market. 107,263 used cars were bought on finance, 5% more than in September 2015, with £1,177m worth of advances, up 8% year-on-year.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The POS consumer car finance market continued to grow in line with expectations in September. This contributed to strong single-digit new business volumes growth of 9% in the first nine months of 2016.”