Figures from the Finance & Leasing Association (FLA) show growth of 25% in the number of cars bought by consumers using dealer finance in January 2014, compared with the same month last year.

Consumer new and used car finance volumes grew by similar rates – up 24% and 25% respectively.

FLA members’ penetration of the private new car registrations market in the twelve months to January reached 74.5%, equaling the previous peak reported in August 2013.

Geraldine Kilkelly, head of research and chief economist at the FLA said: “Today’s figures reflect the latest FLA Motor Finance Confidence Survey for Q1 2014 that found motor finance providers remain optimistic about growth in 2014.

"The majority of respondents expect retail motor finance for new and used cars to grow by up to 10% over the next twelve months.”

In 2013 £27.5bn of point of sale motor finance supported the purchase of new and used cars, including almost three quarters of all private new car registrations.