Women sensibly save to buy their September motor

Savings are increasingly being used to buy cars, research from AA Savings has found.

In a quarterly study of buyers’ intentions, a third more people than at the beginning of the year say they will use savings to buy their next car – while women are 14 per cent more likely to save for a car than men.

In January 2006, 26 per cent of car buyers said they intended to buy their next car using money they have already saved for the purpose, compared with 17 per cent saying they intended to use a personal loan.

But latest figures suggest that the number of people likely to dip into their savings for their next set of wheels has risen by a third to 37 per cent. But the most startling change is amongst women – 40 per cent of women planning to buy a car, say they will use savings to do so – almost double the January figure (21 per cent).

“Around 400,000 new cars at an average cost of £13,000 will be registered following the September plate change. This in turn will release an estimated 1.1 million used cars on to the market at an average cost of £5,500,” says Lloyd East, general manager of AA Savings.

“That’s a staggering £60.7bn changing hands on Britain’s forecourts – which suggests that nearly £22.5bn of savings will be invested on cars. Yet despite this, 74 per cent say spending money on a car is a financial burden, rather than an investment.

“It’s clear from these findings that women are thinking well ahead by saving for their next car. Men are more likely to cash in investments or use funds in their current account.”