- Driver’s first cars cost £3,0004, a 32% increase to £3,957 for their second
- Increased spending on cars reflects rising salaries of youth
- A third of motorists still paid less than £500 for their first vehicle
New research claims that drivers spend 30 percent more on every new car they buy as they climb the ladder of motoring ownership.
Based on a survey of how much people paid for their first, second, third car, the data included both new and used cars, but the lower average prices reflect a much larger proportion that used to be second rather than brand new. Buy hand.
According to data from Direct Line Motor Insurance, first cars cost an average of just £3,004, with second cars up 32 percent to £3,957, third cars up 29 percent to £5,091 and fourth cars up 31 percent to £6,668 Is. .
But by the time they reach their fifth car, they are spending an average of £8,500 – a 29 percent increase.
New research shows that drivers spend 30 percent more on each new car they own
Of those surveyed for the research, 80 percent were used cars, 12 percent were new, while a surprisingly other 8 percent of owners didn’t remember whether it was old or new, the insurer said.
When buying their first car, younger drivers were more likely to choose a new car, with the average first car for the 18 to 34 year old bracket being about 5.6 years old when they bought it.
This is 7.9 years for the next age group of drivers and 8 years for more mature drivers upon getting their first car.
Increased spending on cars reflects higher incomes for young people, with the average income of an 18- to 21-year-old in the UK being around 33 per cent higher in 2020 or £311 a year higher than in 2010.
This is a sharp increase compared to the previous decade, where their wages have increased by only 17 per cent, or £135 per year.
The research also found that higher spending suggests that drivers are more involved when buying a second car than their first.
Some 39 percent of drivers have either gifted or inherited their first car, compared to only 17 percent for second cars.
However, since motorists are more likely to buy their second car themselves, price tends to be a decision maker, with 63 percent saying price is an important factor, compared with 55 percent when buying a first car. Price is an important factor.
The cost of insurance, running cost, brand and style also play an important role in buying a car.
New research says increased spending on cars reflects youth’s rising salaries
Young drivers today are still spending more on their first car than in previous generations, with children aged 18 to 34 spending £4,623 on their first car.
This is 54 percent more than drivers aged 35 to 54 spending £3,003 on their first car and 139 percent more – the equivalent of £1,931 – than what drivers over 55 would pay.
However, 32 percent of savvy motorists bought their first car for less than £500, showing that you can still drive and build your road experience on a budget.
Lorraine Price, Head of Direct Line Motor Insurance, said: ‘Having a new car is clearly important for the younger generation who are not only spending more on their cars but also seem to be replacing them more often.
‘Research shows that as you get older, the rate of buying new cars slows down, possibly as a result of being able to invest more income on new vehicles.
‘When updating and upgrading your car, it is important to remember to let your car insurance provider know.
‘It can be as simple as updating your details online and entering your new registration plate. Failure to do so will mean that you will not insure your new car and will invalidate your existing policy.
In all, Britons have an average of 3.4 cars in their lifetime, with a total of £14,718 purchased.
Young drivers, surprisingly, own the equivalent of 1.8 fewer cars than middle-aged or older drivers, who owned 3.4 and 4.6, respectively.
However, it is believed that they are likely to spend more over the course of their lives due to the rising cost of cars.
Direct Line Motor Insurance researched 2,000 adults in June 2021.