The new Auto Trader Owners’ Guide is a quarterly in-depth examination of the automotive market place and analysis of motorists’ buying and selling behaviour. In addition to data from the Auto Trader Retail Price Index, which provides insight into used car prices, Auto Trader questioned 2,215 UK motorists to gauge how the economy is impacting on their car purchases.

With over half (55%) of drivers having less disposable income in the second quarter of 2012 in comparison to the first quarter of the year, cheaper ownership costs are more important than ever and over half (53%) of potential car buyers said they were looking for a vehicle that is cheaper to run - with petrol prices at the forefront of motorists’ minds. Despite the cost of fuel declining slightly during May and June of this year (2), filling up the tank remains the primary concern for 82% of motorists, followed by insurance fees (67%).

The desire for more economical vehicles is driving demand for fuel-efficient new models. Almost a third (32%) of new car owners chose their car in order to save money on fuel, tax or insurance, compared with used car owners (24%).

Although younger vehicles are highly sought-after, a reduction in new car registrations from 2009 – 2011 as a result of the recession means that there are now fewer nearly-new cars entering the used car market. Subsequently, the profile of the UK car parc is much older now than it has ever been.

Tim Peake, group strategy director at Auto Trader, said: “With the average cost of used vehicles declining, it’s easy to make the assumption that now is a good time to buy a used car.

“However, this average drop in price has been caused by an abundance of older vehicles aged three years plus in the market, and younger second-hand vehicles are scarce. Therefore, now is also a good time to invest in a new vehicle. Not only will you benefit financially from a more economical motor, but as younger models are in high demand, your car may have a greater chance of holding its value into the future.”

The findings also show that with running costs at the forefront of motorists’ minds, more economical and affordable small cars stand head and shoulders above other models as the most popular vehicles to buy.

Among motorists that have purchased a car in the past three months, small family cars like the Volkswagen Golf and supermini models such as the Ford Fiesta are most commonly sought after.

Peake said: “UK drivers love small cars, with good reason. Supermini and small family models tick many boxes for motorists. From a financial point of view, not only are they affordable and fuel efficient, but on a practical level, smaller cars are generally easier to drive and park. And with new manufacturers responding to consumer demand for smaller cars, there are plenty of new models to choose from.”