According to a study by the AA, the demand for new registration vehicles has soared by 22 per cent on last year figures. The news by the breakdown company and car association indicates that interest rate increases have not altered consumer desires in the new cars sector.

The new 56 number plates, about to be released onto the market on September 1st, are expected to provoke a flurry of customers. 33 per cent of people surveyed were considering purchasing a new vehicle, with many using car finance to fund their purchase.

Lloyd East, the head of AA Personal Loans, reportedly commented: As interest rates rise, UK consumers are beginning to tighten their purse strings. But our research shows strong consumer demand for new registration cars ahead of September 1st. Approximately one in three people buying a car in the next year will take out a loan or finance to fund their purchase.

He concluded: With interest rates rising, the cost of buying a car on finance is increasing and it is therefore essential that people intending to buy a new or used car shop around for the best deal before heading for the forecourt.