Car buyers are relying on finance more than ever, new figures have revealed.
Data from the Finance & Leasing Association (FLA) show a 10% increase in consumer new car finance agreements taken up last year compared to 2013.
It now means that more than 76% of private buyers choose dealer-arranged finance when buying a new car.
Comparable figures for purchases made with personal loans are not available at this time, but it is expected that more than 90% of private buyers use some form of finance.
Commenting on the figures, Geraldine Kilkelly, FLA’s head of research and chief economist, said: “There has been strong growth in consumer motor finance provided through dealerships by FLA members over the last couple of years.
“Our most recent industry confidence survey suggests that growth is likely to continue in 2015, but at a slower rate than in 2014.”
Some major manufacturers reportedly return higher profits from their finance and money-lending departments than from profit margins within the cars themselves.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here