The money provided for car lease finance in the UK has more than doubled over the past five years, according to accountancy group UHY Hacker Young.

The group stated that £30.8bn (€34.6bn) in lease finance had been provided for 2015-16, an increase from £13.4bn in 2010-11.

Both the new and used car markets experienced this rise, with values for leases in both markets increasing by over £2bn to £17.6bn for new cars and £13.2bn for used models.

The growth of personal contract hire (PCP) payments has sheen customers shift from traditional ownership in favour of monthly payment plans, which UHY Hacker Young likens to the model of mobile phone purchase.

As a result of PCP, customers are able to upgrade to a new model before the car reaches the end of the road, which the group states enables greater car sales, and higher residual values.

UHY Hacker Young stated that low interest rates have allayed people’s fears about high borrowing costs, and have thereby encouraged the rise of car finance.

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Paul Daly, partner at UHY Hacker Young, said: “Lending to customers via the leasing of vehicles has shot up in recent years.

“New types of leasing plan have been introduced that have helped to make payments more affordable – further enticing more customers to enter into a contract.”