The popularity of car finance is set to soar over the next six months, according to new research.

A study by Sainsbury’s Finance shows that nearly a quarter of people planning to buy a car between now and September intend to use a loan to help cover at least some of the cost.

Of these, some 457,000 Brits are expected to take out a personal loan that covers 100 per cent of the value of the car .

Steven Baillie, head of loans at Sainsbury`s Finance, said: Overall, these latest figures should provide a great deal of optimism for the car industry.

Recent industry figures showed a significant rise in new car sales in February and our Index suggests that that trend - despite the end of the scrappage scheme - is set to continue in the coming six months.

The findings come after a different study by Sainsbury’s Finance showed that buying a car is currently one of the most common reasons for taking out a personal loan .

Earlier this month, accountancy firm Deloitte revealed that car finance may become easier to obtain in the next year.

A survey by the ‘big four’ firm found that 62 per cent of UK carmakers expect the availability of credit to remain the same or improve over the next 12 months.