Over a third of British motorists are planning to buy used car this year, according to the latest research from Auto Trader.

The survey, conducted amongst 1,270 UK motorists in January shows that 35% are planning to buy a used car in 2009, with nearly a fifth (19%) planning to buy a nearly new car and 6% planning to buy a new car.

Two thirds (58%) are looking to upgrade their current car, while nearly a third of motorists (29%) want to save money on rising fuel, road tax and insurance costs with their next car purchase.

Of the people that took part in the survey, 12% are looking to purchase their next vehicle within the next month, with a further 22% looking to buy within the next three months, 27% within the next six months, 20% within the next nine months and 13% within the next 12 months.

However, only 11% of motorists are planning to change their car around the time of the new plate change in March or September.

Not surprisingly, rising costs have put over two thirds of motorists (38%) off purchasing 4x4s, while one in five motorists (21%) have been put off MPVs.

The budget for many motorists seems to be holding up well, with nearly half (40%) planning to spend up to £10,000, over a fifth (23%) planning to spend up to £15,000 and a quarter (26%) planning to spend up to £20,000.

Nearly two thirds of motorists (69%) intend to pay for their next car with cash, followed by a fifth (20%) who will use an unsecured personal loan.

Dealer finance is an option for nearly one in six (14%) of motorists with 8% opting for lease purchase and 6% opting for contract hire. Six per cent will use a secured personal loan and 5% will chose to use a credit card.

When asked where motorists would look to buy their next car, local dealers came top (55%), followed by a private adverts (48%), dealers outside their area (42%), car supermarkets (23%), online auctions (19%), car auctions (16%) and buying from a friend (6%).

Matt Thompson, Auto Trader group marketing director, said: “Over recent months we have seen a consistent growth in demand for fuel and tax efficient super minis and small cars and a decline in demand for 4x4s, MPVs and large family vehicles. We have also witnessed dealers all over the country bucking the trend because they have the right mix of models, highly competitive finance offers and are continuing to invest in advertising to drive leads and sales.