The value of finance provided for car purchases registered an increase in May, according to figures from the Finance & Leasing Association (FLA).

The data reveals that finance for new cars grew in value by eight per cent compared with May 2004, despite a one per cent contraction in volume.

Finance for used cars saw an even greater increase, with loans for second-hand vehicles growing by four per cent in value and by three per cent in volume.

The used car sector received a boost across the board according to the FLA, increasing in volume for both the business and consumer sectors for the first time since November 2004.

A survey from What Car? magazine provides even more positive news for those considering buying a nearly-new car: prices for the average one-year-old car fell by 29 per cent over the last year, the magazine found.

New cars have also seen a price drop, according to What Car?, falling by an average of ten per cent.

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