Finance provided for new car purchases overall in 2005 remained at a similar level to 2004. However, by volume, new business grew by 6% over the same period.

The Finance and Leasing Association (FLA) released its latest figures today, which also showed used car finance last year was down slightly on 2004 by 1%. The volume of used cars financed increased by 4%.

The FLA said: “The reduction in new car volumes was driven primarily by a contraction in finance provided via dealerships to consumers.”

New business Dec 2005 % change 12 mths to Dec 2005 % change
Finance provided (£m)
New cars 900 6% 11,952 0%
Used cars 395 -5% 6,669 -1%
Cars financed (No.)
New cars 71,664 -3% 1,024,533 -6%
Used cars 42,155 -8% 746,969 -4%