A new study has found that women save money on their car insurance, but splash out on their cars . Motor insurance for women is generally cheaper than male insurance, but the new research shows that women want to spend more on their cars than they did three months ago.

The new research, by AA personal finance, shows that women are planning to spend an extra £404 on buying a new vehicle . A spokesman for the finance service, Lloyd East, said: Women are driving up car prices.

A further trend was revealed – people over 50 were found to be more likely to finance a car in cash using their savings, whereas under 30s were more likely to borrow money to afford a vehicle. Dealer finance was also found to be becoming more popular, and almost 35 per cent of buyers look for finance in the showroom.

Car insurance quotes are coming down, according to recent research, with women savings considerable amounts of on their insurance premiums. The difference between car finance providers has also recently been highlighted, with enormous potential savings.