Drivers aged between 18 and 25 are those most likely to be planning to buy a new car in the next 12 months, a new study from AA Financial Services has revealed.
Despite the economic uncertainty in the face of continued Brexit negotiations, the survey of 20,410 people found that almost one in five UK drivers are planning to change their car in the next 12 months. The appeal of purchasing a new car correlates with age, with younger drivers more likely to be in the market for a new car (33%) than their older counterparts (18%).
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However, the AA data also warns that young people are possibly the least likely to shop around for a good deal on finance. When car buyers were quizzed on how they would finance their purchase, the under 25s were almost twice as likely as the national average (21% compared with 11%) to opt for a finance plan at the car dealership or a point-of-sale personal loan (10%).
Just over a third of respondents said they would use their personal savings to buy their next car. The over 45 market are the most likely to be spending more than £10,000 on a car purchase, with the target buy price for 2019 being an average of £12,080 – an increase from £10,745 over the last five years.
The popularity of second-hand cars (less than five years old) also looked to be growing, proving more popular twice as popular as a car with a new registration plate.
David Searle, director of financial services at AA, praised the confidence in the UK market in the face of bleak economic forecasts, but offers a warning to young people on unnecessary debt. “Whilst it is good news to see young people driving demand in the market, we are concerned that so many people are opting for the convenience of forecourt finance, rather than shopping around for the best deal available,” he said.
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By GlobalDataTop 5 ways people will finance their next car
- From my savings 35%
- Spare cash from my account 15%
- Finance from the dealer – lease/personal contract 11%
- A personal loan or car loan not from the dealer 10%
- Loan finance from a dealer 7%
