Car sales across the UK are at their highest levels for five years, as the latest figures from the Society of Motor Manufacturers and Traders (SMMT) reveals that car sales in the first six months of 2014 rose by 10.6 per cent.

That equates to 1.29m cars sales, a figure not seen since 2005.

June itself saw a month-on-month increase of 6.3 per cent, with perennial favourites the Ford Fiesta, Vauxhall Corsa and Ford Focus dominating the top of the sales list.

As many of our breakdown insurance customers may have guessed, this impressive growth is down in part to low-cost finance for fuel efficient vehicles, alongside a general improvement across the economy.

The news was good too for vehicles that aren’t petrol-only, such as electrics and hybrids. Sales for these cars soared by 51.3 per cent in the first six months of 2014, amounting to 23,337.

The UK has not seen such sustained growth in car sales since 1959.

The SMMT believes UK car sales will hit 2.4m before the year is out, a year-on-year increase of 6 per cent.

SMMT’s chief executive Mike Hawes said of the news: “The overall market has risen faster than we were expecting but…growth is showing signs of stabilising around our forecast level.”

In accounting for the sales increases, lenders have pointed to continued finance deals from manufacturers, making it easier for drivers to purchase a car – whether they are buying for the first time or have bought a new car previously.

According to the SMMT, UK car manufacturing has also enjoyed significant success, with 1.51m cars having been built in 2013. The record UK output stands at 1.92m (in 1972), a figure that experts believe will surpassed in the coming years.