Over half of all British drivers (53%) are unable to buy a vehicle without finance or bank loans, according to a brand new study – despite a feeling of distrust around the process.
The revealing statistics are part of a larger piece of research commissioned by used car buying service, ChooseMyCar.com, looking into the financial processes around buying a car. Surprisingly, despite many saying they were wary of car finance and the sales process, the results showed that the majority of car buyers were unable to complete a purchase without relying on financing options.
The numbers showed that:
- There was no difference between men and women in terms of needing to use finance (53% in both cases)
- The younger demographic were most likely to need to use finance, with 69% of 18-34 year olds admitting to relying on it.
- 60% of 35-54 year olds also admitted to needing finance, but just 37% of the over 55s
The study also found that nearly half of those looking at car purchases would struggle to even find a deposit. Forty-one percent of those surveyed admitted that they would not be able to provide a deposit, further limiting their options when buying a car.
The tricky situation was further compounded by the fact that many drivers were confused about the technical terms around car financing (such as HP, PCP and APR) and a lack of knowledge around their credit score and the options available to them.
The stats showed that close to half UK drivers are unaware of their credit score, and would worry about what it was and how it affected their ability to buy a car on finance. Perhaps surprisingly, 43 percent of drivers admitted to not having a clue what their credit score is – with 32 percent admitting they were concerned about it.
Founder of Car Finance company ChooseMyCar.com, Nick Zapolski, said that the statistics paint a picture of many UK drivers feeling disempowered around car financing options.
“Our study is very revealing in the sense that it proves just how many people rely on car finance, without really understanding the deals available to them.
“It’s a shame as this feeling can really diminish what should be an exciting time for people. Getting a new car should be something to look forward to, not stress about. But clearly so many people aren’t aware of their credit scores and the opportunities available to them when financing a car.
“We’d encourage all those who are thinking about buying a car to find out their credit score, read up on finance terms, and take good advice on what’s a good deal. Time to take back your purchasing power!”