MG Rover has signed a preliminary agreement with First National Motor Finance, part of Abbey National, to provide consumer and dealer finance. The deal will replace the current contract with BMW Finance.

First National will provide funds for dealers' new and used car stocking plans and finance for retail customers.

MG Rover chief executive Kevin Howe said the contract would provide "competitive retail finance deals" for customers, acting as a powerful sales tool for the dealer network.

MG Rover registrations last year dropped 5.87%, from 110,122 to 103,663, representing 4.67% market share. The company is determined to maintain sales of at least 100,000 a year, but plans to improve the profit made on each car sold.