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RAC: Poor are spending third of income on cars

Families on low incomes are spending up to a third of their disposable income on their car, figures suggest.

A study by the RAC foundation showed 800,000 households spent at least 31% of their disposable incomes on buying and running a vehicle in 2012.

The figure was a 4% increase on the previous year.

RAC director Stephen Glaister told BBC Radio 5 live's Wake Up to Money: "If costs go up, those people are going to be extremely hard hit."

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