75% of UK drivers say car ownership is becoming more expensive and unaffordable. Over 55s (80%) agree with this, compared to 66% of under 34s and 73% of 35 – 54s.
The new survey of 2,000 UK drivers by InsuretheGap, a provider of Guaranteed Asset Protection (GAP) insurance, reveals the high cost of car ownership. Over one in four (26%), of those who own their car on finance, spend as much or more on their monthly car finance or lease payments as their rent or mortgage.
Also, due to the high cost of new and second-hand cars, almost half (49%) of UK drivers say they are holding on to their current car for longer than they usually would (47% men and 50% women). This is particularly true for under 34s (57%), compared with over 55s (44%).
To keep motoring costs down, one in five (21%) would share a car with trusted neighbours or a small local group. Younger age groups are keener to embrace car sharing options with 39% of under 34s happy to do this, compared to 25% of 35 – 54s and only 12% of over 55s.
Ben Wooltorton, Chief Operating Officer of InsuretheGap.com, said, “A car is a necessity for many, but it’s clear from this survey that many drivers are feeling the pinch, with an ever-larger slice of their money paying for their cars.
“The global shortage in car parts has resulted in a backlog in new cars. This has caused a knock-on effect to the second-hand car market, making prices for new and second-hand cars higher than they have been for years. It’s increasingly difficult for people to pick up a decent bargain with car owners keeping their cars for longer than they might have in the past.
“It’s interesting to see the willingness of drivers to consider car sharing options though, which may be a growing trend in the future. While older people seem less convinced it’s interesting to see younger age groups open to the new sharing economy.”