Those car buyers looking to apply for a car finance loan should consider the benefits of a hybrid car, which makes them eligible for reductions in insurance and tax rates and is more fuel efficient than the conventional car.

Car insurer More Than conducted research into the willingness of Britons to purchase a hybrid vehicle, concluding that 22 million would consider this option on the basis of considerable savings .

Such savings include exemption from the £8 congestion charge applied in Central London . Kevin Maxwell, head of motor insurance at More Than, commented that: Green motoring is going to be a massive growth area for the car industry as petrol prices continue to rise and concern over global warming grows.

Hybrid vehicles employ a standard combustion engine in tandem with a battery which cuts in at slower speeds. Ingenious design allows the car to switch from battery to engine without any noticeable difference to the driver. Predicted growth in hybrid cars suggests that by 2020, one billion vehicles will be in circulation worldwide. The number of hybrid vehicles on British roads increased by 75% between 2004 and 2005.