Car salesmen at a Skoda dealer in leafy Sussex rubbed their hands as a determined buyer walked in the door. She had done the research and was armed with the cash to pay for a 1.2 litre Yeti crossover, then and there.

The showroom’s best price, the lead salesman told her, would be a shade over £23,000. But, he added, if she would keep her cash and buy the car on credit, there was a deal to be done.

Buying through a personal contract purchase (PCP) would allow the showroom to access better prices from head office. Buy now, pay later and the price would be more than £1,000 lower.

It was a no-brainer, but also a head-scratcher. Borrowing usually costs rather than saves money. The buyer had stumbled into bizarre economics that have greased the car industry’s wheels and driven a massive expansion in personal debt in Britain.

Skoda, part of Volkswagen, has not been alone in pushing PCPs. Car dealers nationwide have made credit more easily available than ever before. More than nine in 10 new cars sold in Britain are bought with debt and since 2011, there has been a 160pc increase in credit sales.

It seems to suit everyone. Manufacturers, dealers and consumers all benefit, according to advocates of PCPs.