Buying a new car is becoming less attractive due to the credit crunch, with car buyers preferring to save money . A recent survey shows that the demand for car finance is falling, and could fall further, as motorists stop purchasing new vehicles in order to cover the cost of living.

A survey conducted by insurance company esure indicates that 71 per cent of those surveyed are holding off buying a new car in order to save money. Furthermore, some 58 per cent claim that depreciation in prices for used cars is causing them to hold off selling their existing vehicle.

Furthermore, some 48 per cent are even considering selling of their vehicles. The head of risk and underwriting at esure car insurance, Mike Pickard, was reported as commenting: With the combined effect of rising motoring costs, high fuel prices and the credit crunch adding strain on motorists'' pockets, it comes as no surprise that UK drivers are opting to reduce the number of vehicles they own. The fact that they’re also keeping their cars for longer is proof that UK drivers are becoming increasingly conscious of keeping motoring costs down.