Research by the AA has suggested that demand for cars is set to increase substantially in 2007, with 20 per cent more people planning to buy a new vehicle this year than in 2006.
A quarter of people plan to buy a new motor in 2007, compared to a fifth last year, according to the study.
Furthermore, 46 per cent of people are planning on buying a new or nearly new car this year, compared to 29 per cent in 2006. The number of people intending to buy a vehicle that is three years old or more has dropped from 28 per cent to 22 per cent.
The amount of money spent on cars also looks set to rise in the coming 12 months. The average amount spent stood at £9,342 in 2006, this is expected to increase to £10,136 this year.
Lloyd East, director of AA Personal Loans, said: "We have now been tracking the new and used car market for over a year and the findings show that despite motorists enduring difficult times â€“ with increases in the price of petrol, the threat of road pricing and tax hikes â€“ it’s clear these cost changes have done little to dampen the demand for cars."
Other findings of the survey suggested that buyers this year may look more closely at how well a car serves their needs, rather than purely its looks or performance.