Motorists `downsizing to avoid debts`

Motorists in the UK are downsizing their vehicles in order to save money and potentially avoid falling into debt problems, new figures suggest.

Produced by LV=, the statistics indicate that one in five road users have downsized, with 61 per cent of these having done so in order to save money on fuel.

Meanwhile, 29 per cent did so in order to achieve cheaper insurance premiums.

It was also found that 66 per cent of downsizers say they cannot afford to purchase a brand new car due to current economic conditions.

John O`Roarke, managing director of LV= Car Insurance, stated: "Buying a car is often the second biggest purchase people make after their house.

"So it`s only natural that in the current economic downturn, when people are being more careful with their money, they also look to save on their motoring costs."

Research conducted last month by cahoot suggested that, as another way of saving money, 39 per cent of people polled reported that they were spending more time at home as opposed to going out.