Car buyers trim their budgets

People planning to buy a car this year have trimmed their budgets.

Figures from AA Personal Loans show the average amount people plan to spend on a new set of wheels this year is almost £1,000 lower than in the second half of 2007.

With the economy slowing and living costs rising, Brits are feeling the squeeze.

Those planning to buy a new car this year will spend £8,851 on average, down from £9,827 on six months ago.

"Faced with rising costs including fuel – for example the cost of unleaded petrol is now 102.8p per litre compared with 87.5p this time last year – car buyers seem to be shopping around for a more economical way of buying a reliable car," said Mark Huggins, head of AA Personal Loans.

"A third of buyers finance their car purchase with a loan, so it’s important they shop around for the best loan rate, too."

This could be good news for the used car market as lower budgets are likely to see people shying away from brand new models.


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