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Car finance and sales dip as consumers worry about debt

As the world is bracing for a possible double-dip recession, car buyers in the UK are being put off buying a new car in favour of paying off their debts at home.

As the world is bracing for a possible double-dip recession, car buyers in the UK are being put off buying a new car in favour of paying off their debts at home. The news comes as the car industry could do with a bit of a sales hike, but this new survey will show that tough times are on the way for our car manufacturers.

The research was carried out by AA Financial Services.

"The survey suggests that new car sales are likely to remain depressed," said Mark Huggins, director of AA Financial Services. "Only a third of respondents plan to change their car within the next 24 months, less than a fifth of them intending to buy a brand new one.

"Seeing a shiny 61-plate car on the drive is a dream for most families when they have more pressing concerns, so they are hanging on to their cars a bit longer."

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