Mark Huggins, Managing Director Of AA Personal Loans, Said: "Our Research Shows That Britons Are Putting Practicality And Cost First

Category: Finance, Personal Finance.

An increasing number of motorists are looking to buy cheap- to- run cars, new research shows.

The company claims that such desires come as fuel prices have surpassed the 1 pound per litre mark. In a study carried out by AA Personal Loans, the percentage of those wanting to get a compact vehicle that will not put too much pressure on their finances to run has surged by some 43 per cent. However, with such costs predicted to rise even further, more people could find that petrol expenses will strain other areas of spending related to their automobile, for instance getting repairs done or paying back the loan taken to fund the purchase of the vehicle in the first place. Meanwhile, a fifth of those between the ages of 45 and 54 state that they want to purchase such a vehicle. The research showed that the proportion of Britons intending to get a super mini car, such as a Renault Clio or Nissan Micra, has risen dramatically over the course of 2007 to currently stand at just under 15 per cent. Findings from the financial services firm also revealed that people from Yorkshire are most willing to buy this type of automobile. However, Londoners seem to be more willing to purchase this type of automobile as five per cent of people from the capital state they are prepared to buy such a car.

On the other hand, the level of those considering getting a 4x4 vehicle has decreased from nine per cent down to four per cent since January last year. Research from the firm also revealed that over a quarter( 28 per cent) of motorists place low running costs as the second most important factor when getting a car, the purchase of which could be financed through a personal loan. Mark Huggins, managing director of AA Personal Loans, said: "Our research shows that Britons are putting practicality and cost first. Meanwhile, mechanical reliability was cited by 32 per cent of respondents as the most crucial consideration. The environmental impact, running costs and practicality appear to be growing concerns, although Londoners appear to be bucking the trend despite dealing with more congested roads. As a result, Mr Huggins advised motorists to take the time to ensure that they get the best finance deal possible, whether this is via a cheap loan or otherwise, when purchasing a car. About a third of those opting to buy a car in the next year will take out a loan or other finance to fund their purchase. " He added that although interest rates attached to such products have been rising, the loan market" remains competitive" .

In turn, those looking for an effective way to buy a vehicle may wish to consider applying for a personal loan, as such a move can prove to be cheaper than choosing a car showroom finance deal. With about a fifth of these purchases due to be funded through a loan, head of Sainsbury, Steven Baillie s Loans, advised prospective buyers to ensure they take the time to get the best finance deal possible. Earlier this year, a study by Sainsbury s Car Loans revealed that 35 million Britons are aim to buy a second- hand car in the six months leading up to February 2008, spending an average of 4, 648 pounds.

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