Car finance deals reach a new record

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The value of finance deals to buy cars has climbed massively to a new monthly record. This is according to new figures.

The Finance and Leasing Association (FLA) said in March that motorists spent a whopping £3.6bn on car finance deals. This is a rise of 13 per cent on the same month in 2016.

Most of these purchases were done through Personal Contract Purchases (PCPs).

Both the Bank of England and the Financial Conduct Authority (FCA) have raised concerns about these deals.

Including used cars, consumers spent a huge £32.5bn in the year to March.

You can buy new and old cars using PCPs, buyers can also rent a car for up to four years.

At the end of this they can either pay a final lump sum or return the car at no extra cost at the end of the contract. It has to be in good condition and be within the agreed mileage.

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