Home Business NewsBusinessAutomotive News Four in ten drivers under 34 pay as much for car as rent or mortgage each month

Four in ten drivers under 34 pay as much for car as rent or mortgage each month

by LLB Finance Reporter
9th May 23 12:52 pm

A new survey of 2,000 UK drivers by InsuretheGap, a provider of Guaranteed Asset Protection (GAP) insurance, reveals the high cost of car ownership for younger drivers, with over half (57%) of under 34s saying car ownership is getting more expensive and could price them out of driving, compared to only 35% of over 55s.

Over four in ten (41%) under 34s spend as much or more on their monthly car finance or lease payments as their rent or mortgage (UK average figure is 20%); and only half (53%) says it’s easy to get finance on a car purchase.

Image is very important for this age group, however, with over a half (53%) saying they would go over budget for a car that looks good, compared to 30% on average, and 42% saying having a flash car impresses their friends, which is double the average figure of 20%.

To keep motoring costs down, half of under 34s (50%) would share a car with trusted neighbours or a small local group, compared with only one in ten (13%) drivers over 55s. London drivers (58%) are twice as likely to say they would car share than the UK average (28%).

Ben Wooltorton, Chief Operating Officer of InsuretheGap.com, said: “Although many young drivers strongly link car ownership with their personal image, it’s interesting that in the face of increasing costs they are the most willing age group to consider other less traditional options such as car sharing”.

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