The value of new business in the consumer car finance market increased 16 percent during the first half of 2016, compared to the same period in 2015.
The Finance and Leasing Association (FLA) released a report that also shows the point-of-sale (POS) growth of new business increased year-on-year by 11 percent, by volume.
For the month of June this year the number of new cars bought on finance by consumers through dealerships, was nearly double that of those bought on finance by businesses.
Out of the 89,000 new cars bought through dealerships in June, £1.5m worth was spent in the value of advances to finance them.
Compared to June last year, the number of new cars bought on finance through a dealership rose five percent, whereas the value of advances for new cars rose by 10 percent.
Throughout June this year there was a dramatic difference in the number of used cars bought through a dealership, 105,000, compared to those that were bought on finance by a business, 3,100.
The value of used cars bought on finance by businesses rose 10 percent from the same period of June last year.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The POS consumer car finance market reported a strong performance in the first half of 2016, with double-digit growth in both the new and used car finance markets.
“Despite modest contractions in private new car registrations in recent months, FLA members have continued to report growth in new business volumes.”