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U.K. Dealership Reports 11% Jump in Q3 Sales

(Adds CEO quote, detail and context)

LONDON, Oct 23 (Reuters) - British car dealer Inchcape reported an 11 percent rise in third quarter sales on Thursday, benefiting from strong demand for new cars and the falling age of used vehicles.

The firm, which operates in 26 countries and distributes cars for global brands including Audi and Jaguar, posted revenue of 1.7 billion pounds ($2.73 billion) between July 1 and Sep. 30 2014, up 10.6 percent at constant currency.

Britain's fifth-largest car dealership by volume said demand for new cars was "well ahead" of last year and that the used car segment had grown thanks to an increase in vehicles ages between one and five years old.

Inchcape, which expects to end the year with a net cash balance of around 200 million pounds, said it was on course for strong growth in 2014, helped also by a long-term strategy focusing on the sale of luxury models.

"Our focus on premium growth will continue to deliver premium returns for our shareholders," said CEO Andre Lacroix, who will leave the company in 2015.

Cheap finance, helped by record-low interest rates, has pushed up British car sales since the 2008-09 financial crisis, after which levels nose-dived and the government intervened to support the industry with a scrappage scheme.

Up to 80 percent of new-car purchases are now made on credit with many customers effectively renting a new car - typically for three years - before trading it in for a new model, helping to bring down the average age of second-hand vehicles.

Britain is on track for a total of 2.45 million new car registrations in 2014, which would be the highest level recorded since 2004 according to industry body the Society of Motor Manufacturers and Traders (SMMT).

(1 US dollar = 0.6228 British pound) (Reporting By Costas Pitas; Editing by Karolin Schaps and William Hardy)

TAGS: Dealers Retail