The Finance & Leasing Association’s figures for the motor finance industry for May 2006 indicate that after a weak April, May data revealed stronger results.

The number of new cars purchased on finance through FLA member companies increased by 4% compared with May 2005, but was down 3% in the latest twelve-month period.

Growth was driven by the business new car sector. The used car sector reported new business volumes at a similar level to May 2005 but fell 3% in the latest 12 month period.

Geraldine Kilkelly, FLA’s head of research, said: “Strong growth in the number of business cars combined with a fall in the number of consumer deals reflects trends in the motor industry as a whole, with business new car registrations recording their best performance of the year while the private sector continued to struggle.”

Finance advanced for new and used cars in May totalled £1,021 million and £616m respectively. Respective lending volumes in unit terms were 84,266 and 64,534, these volumes being up 4% and level year on year respectively.

(Source: Auto Industry)