In its Deal on Wheels report, AA Personal Loans points out that a fifth of Britons are planning to buy a car over the course of the next 12 months. Such a figure represents a fall of five percentage points from the one in four consumers who were looking to do this in the same study carried out last year. Findings from the firm also showed that the typical purchaser is now set to spend 8,851 pounds on a vehicle, down from the 9,827 pounds recorded six months ago.

Research from the firm also indicated Scottish people are most looking to buy a car in the next 12 months. More than a quarter (28 per cent) of consumers from the region are planning to make such a purchase this year, in comparison to 17 per cent of Britons living in both the south of the country and Wales and the Midlands.

In an attempt to perhaps avoid overspending, the financial services provider pointed out that an increasing proportion of Britons are buying second-hand cars. Over the past six months, those looking to purchase a model which is less than three years old has gone up from 36 per cent to 45 per cent.

For an effective way to finance buying a car, whether it is a new model or second-hand, a competitively-priced UK personal loan may be of assistance.

Additionally, men were shown to be more likely than women to get a car over the duration of 2008. However, it was pointed out that 15 per cent fewer males now plan to purchase a new automobile, compared to six months ago. Meanwhile, the proportion of men choosing to get a second-hand model has surged by a third to account for 48 per cent. Although levels of females who are likely to buy a new car has stayed consistent, those wanting a used car which is less than three years old has gone up to 42 per cent.

Mark Huggins, head of AA Personal Loans, stated that it is increasingly important that motorists take financial considerations onboard when buying a vehicle. He said: "Faced with rising costs including fuel - for example the cost of unleaded petrol is now 102.8 pence per litre compared with 87.5 pence this time last year - car buyers seem to be shopping around for a more economical way of buying a reliable car. A third of buyers finance their car purchase with a loan, so it's important they shop around for the best loan rate, too."

One way prospective car buyers may wish to fund their purchase is by taking out a cheap loan. In opting for a cheap personal loan ahead of a forecourt finance deal it is possible that consumers will be able to make repayments on their borrowing at an affordable level and have more bargaining power to get the vehicle of their dreams. Meanwhile, Sainsbury's Bank revealed last year that by not haggling on the price of a second-hand car Britons could be losing out on thousands of pounds.