According to the Finance & Leasing Association, both the consumer new and used car finance markets grew in May 2011. The number of new cars sold on finance was up by 3% on May 2010’s sales, and the number of used cars sold on finance was up by 6%.

Although demand for new and used car finance in the first five months of the year has varied, the increased market share shows that motor finance is an affordable way to buy a car. The FLA figures show that consumers are taking advantage of the many competitive offers available and the flexibility that motor finance offers. Take-up of leasing and personal contract purchase agreements for new cars were up by 14% in the last twelve months compared to the previous twelve. Hire Purchase agreements fell by 20% over the same period.

Commenting on May’s motor finance figures, Paul Harrison, head of motor finance, said:

“While economic uncertainty affects consumers when making big purchasing decisions, motor lenders have responded by offering value-for-money packages. More than half of all consumers choose to use finance from the dealer when they buy a new or used car.

“As competition in the credit markets increases we expect consumers to continue to benefit from offers matched to their individual needs and budgets.”