Fewer people are planning to buy a new car than six months ago but those taking the plunge are set to spend more, according to fresh research.

A study carried out in conjunction with the Sainsbury's Bank Car Buying Index has revealed that while 14% of motorists plan to buy new between March and August, down around a third from the previous period, the average spend is expected to be 4% higher, at £10,685.

Sainsbur's Bank, which provides financial services including personal loans, runs the survey to predict short- to medium-term car buying habits.

According to the research men are more likely to buy a replacement car in the next six months with 17% planning a purchase compared to 11% of women. Men are also nearly twice as likely as women to be looking for a brand new car, with 9% compared to just 5% of women.

Around 19% of the £70.7 billion that is estimated will be spent on cars before the end of August will be financed with personal loans, with 36% of people choosing to pay for at least part of the car in this way.

A substantial number of those looking to change their vehicle are doing so for financial reasons, according to Sainsbury's Bank. Nearly one in four potential car buyers (24%) intend to trade in their car for a second-hand one, and one in five (20%) are looking to change their vehicle for one with a smaller engine size to reduce their fuel costs.

A further 12% of those looking to purchase a car said they intended to change from a petrol model to a diesel one in order to save money on fuel and road tax - although in many cases drivers might do better to stick with petrol.

Steven Baillie, Head of Loans at Sainsbury's Bank said: "Our car buying index provides a barometer of consumers' intention to buy and although the research suggests a dip, the average intended spend has increased by 4% on the previous six month period.

"For those looking to buy a car, we'd encourage them to consider all payment options available to them. For example, a personal loan could offer more competitive rates than other forms of finance which could make a big difference to the total repayment amount."