Following on from car finance news yesterday, despite claims by motor finance companies that the car scrappage scheme has had a small impact, dealer finance soared by 4 per cent during August. Many motor finance experts predict a similar increase during September, with the impact of the new number plates having an influence.

The Finance and Leasing Association pointed out that motorists were focusing on buying small, economical vehicles. Many were choosing to part with savings rather than opting for motor finance, but the car finance figures for August show a dent in this trend.

Unfortunately, the used car finance sector suffered again during August, with a fall of 23% of used cars sold with consumer finance . Despite the increase in new car sales, the FLA recently confirmed just how much the car industry and the finance sector need government support.