Almost a quarter of car buyers claim they would be most likely to opt for a finance package from the retailer at the point of sale, compared with just 15 per cent who would choose a personal loan from a high street bank.

According to a study by car financing company GMAC, car dealers appear to be holding their own in the finance market as only 7 per cent of consumers would consider borrowing from an online loan provider.

More than a third of all respondents – 34 per cent - said that their personal experience in the showroom would be the single most important factor in deciding whether or not to purchase finance from the dealer. The survey also found, however, that the vast majority of motorists at 88 per cent decide how to fund their new vehicle before leaving home. Over half are prepared to withdraw cash from a savings account to pay for a new car and 22 per cent said they relied most on their own research when analysing the finance options available.

Ed Paulat GMAC's UK managing director, said: “The results of this survey expose the myth that car buyers consider retailer finance to be complex, expensive and out-of-touch with their needs. “As the survey shows, good personal relationships are an extremely important part of the car buying process.”