Drivers keen to spend more on cars

Drivers keen to spend more on cars

The economic recovery is giving motorists the confidence to set aside more money to pay for their next car, according to a new study.'s second Car Buying Index suggests that 27% of consumers intend to spend more than £25,000 when they change cars, compared to 23% in November last year.

The latest figures indicate that 14% of people think they will spend more than £20,000, 22% over £15,000, 24% more than £10,000 and 13% of consumers think they will spend over £5,000.

Nearly a fifth of deals will be done through dealer finance, hire purchase and contract purchase (18%), double the percentage found in November. A fifth of buyers expect pay between £200 and £249 a month for cars, while 19% are budgeting for £150 to £199. One in 10 buyers hope to pay between £100 and £149, while 11% are prepared to pay more than £400 a month even before they factor in the cost ofcar insurance .

More than three quarters of consumers (77%) are planning to change their vehicle in the next three years, while 72% said so in November, meaning they are beginning to loosen their purse strings, according sales director Chris Green.

Copyright Press Association 2013