Car buyers will spend nearly £1,000 less on each car purchase in 2008 due to rising owner costs and economy slowdown fears, a new study has revealed.
Research carried out by AA Personal Loans found that planned spending on cars has dropped to its lowest point for two years – falling by an average of £976 within just six months.
The figures revealed a drop in the amount of people expected to switch cars this year, falling from 25 per cent in 2007 to 20 per cent this year.
The study also indicated that demand for sub-three year old used cars could be at a premium this year, with 45 per cent of respondents indicating that cars in this age bracket were their first choice.
The total demand for 1-3 year old models has risen by 25 per cent from 2007, according to the study .
Male drivers seeking to purchase a second hand car in 2008 increased by 30 per cent from last year, and 24 per cent more women were found to be planning on buying a used car than in 2005.
Car buyers opting to buy brand new were mostly found in Scotland, with 28 per cent of Scots saying they would do so, compared to an average of 17 per cent in Southern England, the Midlands and Wales .
In terms of age, 43 per cent of over-55's said they were still planning to buy new, although 53 per cent of 35-44 year olds said they would be seeking to buy cheaper used cars due to greater cost burdens with young families .
