A financial company has revealed that car loans have increased.

Figures display that since the Government’s scrappage scheme in May, around £61.2 million of personal loans per month have been taken out to purchase cars. The total is up from the monthly average of £44.7 million in 2009, prior to the programme.

The scheme, which pays consumers £2,000 to get rid of their old bangers and replace it with a more environmentally friendly motor, proved to be so successful that the Government recently announced an extension of the scheme to cover an additional 100,000 cars and vans.

The financial group said the scheme is responsible for a 37% rise in the value of personal loans taken out to purchase cars in the 3 months after the launch date of 18 May.

Steven Baillie, head of loans at the firm, said: “Since the Government’s scheme has been introduced we have seen a sharp spike in the number of loans people are taking out in order to buy a car, which is hopefully a good sign that the motor vehicle market is coming back to life.”