Personal savings appeared to be the most popular method used by motorists to finance the purchase of a new car, a survey by consultancy SPA Future Thinking has found.

Two in five (40%) of the survey respondents said they had used or intended to use their personal savings for car purchases, whereas 34% had used or intended to use low finance deals from manufacturers and dealers.

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The survey, conducted among 1,200 consumers last November, found that the average amount spent on a new car was £20,528, while those purchasing a used car spent an average of £8,125.

Electric cars

According to the survey, two thirds (64%) of motorists would consider purchasing an electric or hybrid car in the future, or already own one.

The majority (56%) of respondents cited fuel economy and reduced running costs as the most important factor encouraging them to buy an electric or hybrid car, followed by vehicle’s purchase price (52%) and miles per full charge (44%).

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Over a third of the consumers that took part in the survey said they would not consider buying an electric or hybrid car. The most popular reasons identified were the limited number of charging points and range of cars as well as the infancy of the technology.

At present, motorists buying new electric cars can claim a grant of 25% off the cost of the car – up to a maximum of £5,000.

Interestingly, only a quarter of respondents (25%) had heard of the £200 million scheme, indicating a lack of communication around the policy. Upon learning about the scheme, 35% said they would be more encouraged to purchase an electric car.