Over a quarter of car buyers (27%) have increased their average budget for their next car to over £25,000 according to research from Motoring.co.uk.
The results are based on Motoring.co.uk’s Car Buying Index which surveyed 1,500 car buyers in July.
The results also show 14% of respondents plan to spend over £20,000, 22% over £15,000, 24% £10,000 and 13% over £5,000.
The research also reveals that 77% of consumers intend to change their car in the next three years, up from 72% in November 2012.
When it comes to funding their next car, the number of car buyers planning to use dealer finance, hire purchase and contract purchase has doubled since November 2012 and now stands at 18% and for premium brand purchase, the proportion is even higher at 23%.
Car buyer’s expectations on monthly payments have stayed constant with the vast majority (20%) budgeting between £250 and £249 per month, while 19% are budgeting £150-£199, 15% are budgeting £250-£299, 13% are budgeting £300-£349, 11% are budgeting £400 plus, 10% are budgeting £100-£149 and 6 % are budgeting £350-£399.
Chris Green, Motoring.co.uk sales director, said: “The research shows that consumers are starting to open their purse strings just a little and some are planning to spend more on their next car than six months ago.
“The shift away from funding their car with cash and using dealer finance continues and this is partly due to the compelling finance offers from volume brands like 0% finance and premium brands, who now have incredible subsidised finance offers.”