Brits will spend £36.4 billion on purchasing new and used cars this year, or 4.5 per cent of disposable household income, according to new research.
The Halifax says this equates to £1,490.30 per household per year, up from £922.80 since 1995.
Furthermore, it said that spending on motor vehicles has increased by 61 per cent over the last ten years despite the price of cars on the forecourt decreasing by six per cent over the same period.
With so much being spent consumers are advised to shop around for a good finance deal.
Ian Larkin, head of Halifax Unsecured Personal Loans, said: “Buying a car is probably the second biggest purchase you will ever make, after buying a house, so it is important to consider how you intend to finance this and choose a product most suited to your needs.”
He adds that those looking to by a new car should not forget the cost of extras such as MOT tests, tax and insurance.
© Adfero Ltd