Over half of motorists holding onto cars older than 10 years old due to cost of living

Over half of motorists holding onto cars older than 10 years old due to cost of living

However, running an older car has, in some cases, caused some motorists financial anguish, with 10 percent claiming some repair bills have run into the thousands.

Nearly one in 10 aren’t sure how much their ageing car has set them back – while one in five (21 percent) reckon they’ve spent more on repairs in any given year than they think their entire car is actually worth.

And two-thirds (64 percent) said unexpected car repair bills cause them stress, with 44 percent having experienced two or more surprise bills over the last 12 months.

Almost a third (31 percent) have had a bill of £400 or more in the past year for an unanticipated, but essential, maintenance item – while 10 percent have had a single bill of £1,000 or more.

When their beloved old banger conked out, 35 percent admitted to taking it out on the car itself, by giving the door a boot or whacking the steering wheel.

It also emerged nearly half (43 percent) suspect it may be more economical to buy and run a newer car, than keep maintaining their older one.

Mark Carpenter, CEO at nearly new vehicle retailer Motorpoint, which commissioned the research, said: “It’s important when budgeting for a new car to consider maintenance costs, which will be required throughout its life.

“In the current climate, many motorists will look to weigh up the pros of hanging on to an older car, which they may own outright, with financing a newer one, that may meet their needs for additional space, lower emissions, improved economy, and safety equipment.

“For those with a vehicle that has become unpredictable, or changing needs such as a growing family, it is important to understand the options available, such as a fixed monthly payment and a vehicle with warranty protection to manage repair bills, and to be sure this is affordable.”

The study also found more than a third of respondents (36 percent) claim a lack of awareness of car finance options has seen them hang onto an old car, rather than upgrade it.

Almost half (46 percent) plan to replace their car within the next three years, while 25 percent will use finance to purchase it.

For 26 percent, they are not sure whether they will pay cash or use finance to spread the cost.

But 23 percent would be more open to using finance if they had someone to explain the options to them – as 58 percent find car finance terms confusing.

For people who do foresee a change on their driveway, 57 percent will go for something pre-owned, but newer than their current one, according to OnePoll figures.

Lower running costs (24 percent), improved reliability (13 percent), and simply wanting a change (seven percent), were the top reasons people would consider switching their older car.

Mark Carpenter added: “If you have identified a need to change your car, it’s important to thoroughly examine your budget and stick to what is affordable, including if your circumstances change.

“Car finance terms can be confusing, and knowing the difference between the options might seem like a bit of a minefield at first.

“We’d always advise doing your research, either online, over the phone, or by speaking to an advisor in person.

“Once you’ve set a budget, using an online finance calculator is often the quickest way to determine the right finance route for your circumstances – for example, the deposit size, monthly payment, the length of the finance agreement, and annual mileage.

“Finally, any additional products, such as extended warranty, should be factored into the overall budget. These require extra initial outlay, however they can help avoid unexpected costs further down the line.”

Motorpoint partnered with automotive presenter Natisha Chatten, who runs the channel @auto_social_uk on Instagram, to compile a series of top tips for those planning their next car purchase.

Natisha Chatten said: “Making sure you’re aware of all the pros and cons of different types of car finance, depending on your personal circumstances, is the first step to making the right purchase.

“Having one set payment can be more affordable if it means the car is more suited to your needs, so this is worth considering as part of your decision.”

DECIPHERING KEY CAR FINANCE TERMS – WHAT THEY MEAN:

  • GMFV – If you opt to purchase a vehicle by PCP [see below], Guaranteed Minimum Future Value is an estimate of what a vehicle will be worth at the end of the contract. When the PCP contract ends, this can be paid either as a lump sum, or refinanced to secure ownership of the vehicle.
  • APR – Annual Percentage Rate takes into account yearly interest added to a sum borrowed to buy a car or other item. This rate will be fixed for the duration of the agreement.

Published at Thu, 10 Nov 2022 13:25:25 +0000