Cash loans for new cars soar by £2 billion in 12 months
THE amount of loans given for new cars has soared by more than £2 billion in the past year, new figures show.
The Finance and Leasing Association (FLA) said the industry provided more than £9 billion of finance for consumers in the 12 months to November 2012.
This figure is a 34% rise and paid for more than 650,000 new cars over 2012.
The FLA's latest statistics also show that 70.8% of all private new cars sold over the previous 12 months were funded by showroom finance. Personal Contract Purchase (PCP) agreements now account for 63% of total new agreements by value, it said.
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Paul Harrison, Head of Motor Finance at the Finance and Leasing Association, said: "These figures show continued strong growth in the new car market as incentivised deals continue to make new car prices attractive for buyers. Those incentives are available across the full range of finance products including hire purchase, leasing and personal contract purchase.
"Motor finance companies have provided drivers with an extra £2 billion of finance in the last 12 months allowing thousands more people to drive away from the showroom in a new car."