Brits are increasingly looking at second hand cars as they believe they will offer better value for money.

Figures from the AA suggest that many car buyers are no longer looking for brand new models, especially following the recent increase in interest rates and escalating energy bills. Instead more car shoppers are looking for good deals on second hand vehicles.

Demand for the new 56 registration plate has fallen and just five per cent of people are planning to change their vehicle in the next two months – despite new plates usually boosting forecourt sales.

The study revealed that the proportion of car buyers opting for a nearly new model that is not more than three years old has increased by five per cent to total 45 per cent in the last three months. However, demand for new cars has dropped from 30 per cent to 26 per cent.

Lloyd East at AA explained: "For many people, their car is second only to their home as the most expensive purchase they will make."

He added: "Our summer research shows that demand for cars remains at a steady level, although an increasing proportion of the car buying market is looking for a second hand model."

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