According to figures released by the Finance and Leasing Association (FLA), point-of-sale dealer car finance fell by 5 per cent during the month of November 2006.

According to the report, dealer-mediated motor finance deals fell to 71,811. During the month of November, the FLA advanced 910 million pounds in credit . The number of new cars that were financed by dealerships slid by 11 per cent, and represented 46 per cent of all new cars bought by private buyers during November.

Geraldine Kilkelly, the head of research at the FLA, reportedly commented: The concern over dealer finance continues with this latest set of figures demonstrating that the market remains weak. Penetration of the private new car market reached a new low with just 46.0 per cent of private new car registrations financed via dealerships. This compares with 57.0 per cent at the same time four years ago and underlines the urgency of dealers and finance houses working together to reverse the trend.

She concluded: Key is to engage prospective consumers before they have decided how to fund their vehicle . Already FLA has set up a consumer-facing website financingyourcar.org.uk, and we are developing a number of initiatives with dealers including accredited training.