According to recent statistics released by the UK Finance and Leasing Association, car buyers are still looking for Personal Contract Purchase deals despite the recession . The takeup may be down to the flexibility offered by this type of vehicle finance .

The FLA found that PCP deals on new cars were up 3 per cent on February statistics. However, leasing deals in the same period fell by a massive 36 per cent. The need for the government to act to help stricken car finance credit has never been more urgent.

The Head of Research and Chief Economist at the FLA, Geraldine Kilkelly, reportedly commented: February's motor finance figures give us further evidence of the need for Government support to boost liquidity in the motor finance market. But demand for Personal Contract Purchase deals rose 3%, indicating that consumers are seeking out flexible finance agreements to help them during the economic downturn.

However, sales of new cars were way down on February 2008 figures.