Finance provided for new car purchases has grown by 8% this May by value, but contracted by 1% by volume compared to May last year.

The Finance and Leasing Association (FLA) figures show that the rate of contraction in the number of new cars purchased on finance by consumers was at its lowest level since December 2003.

Used car finance was up 4% by value and 3% by volume compared with May 2004. Both business and consumer used car sectors saw volumes grow for the first time since November 2004.

New business May 2005 % Change
Finance provided (£m)
New cars 952 8%
Used cars 571 4%
Cars financed (No.)
New cars 81,108 -1%
Used cars 64,301 3%