The number of new cars ordered by private buyers using dealer-sourced finance has soared in recent months, figures show.

Data released by the Finance and Leasing Association (FLA) shows a 27% increase in the number of cars bought this way compared to the same April-June period ("Q2") last year.

The value of dealer-sourced loans has risen 38% too, suggesting a stark contrast between general consumer confidence a year ago and today.

More than £2.2 billion was loaned to consumers through dealers in Q2 to fund 155,151 new car purchases.

FLA statistics show that Personal Contract Purchase remains the most popular product, accounting for 61% of all consumer new car finance agreements. Hire Purchase accounted for 26% and leasing for 8% of the market respectively. Personal loans from motor dealers accounted for the rest.

Over the last 12 months 67.9% of new cars bought by normal consumers were financed using loans sold by dealerships.

Arguably an even more remarkable swing has been seen in the number of businesses choosing to use dealer-sourced finance to buy used cars in Q2. An increase of 67% was observed, with a 168% increase for June alone over June 2011.