The demand for new cars could be falling, and more motorists looking for a second-hand vehicle, according to a fresh report by AA personal loans .

AA also provided reasons behind the figures, citing increasing living costs as a contributory factor. The cost of living is certainly high in the UK, with mortgage repayments, rising energy bills, and the recent increase in energy bills adding to general concerns over affordability.

Overall, the demand for cars has barely changed, but the balance seems to be shifting towards second hand cars . The number of people buying second hand has increased from 40 per cent to 45 per cent over the course of the last three months.

This week sees the release of new ‘56’ license plates, yet the anticipated rush to claim them may not be quite as furious as first predicted. Buyers looking for a new vehicle should be aware of possible savings on car finance . Additional costs including running cost, car insurance and road tax can also swiftly add up.

Lloyd East, an expert at AA personal loans, raised the point that: It's a false economy to get a car for a good price only to then buy it with expensive car finance .