8:02 am, November 12, 2022
More than half the number of drivers with older cars are holding on to them for longer because of the cost-of-living crisis.
That’s according to new research from Motorpoint, whose poll of 2,000 UK drivers with cars more than 10 years old revealed that for 57 per cent of them, worries over the current financial situation mean they intend keeping their car for longer.
The independent car retailer also found that running an older car has caused some motorists financial anguish, too, as the study highlighted some repair bills that have run into the thousands.
Nearly one in 10 admitted they aren’t even completely sure how much their ageing car has set them back, while more than a fifth (21 per cent) reckon they’ve spent more on repairs in any given year than they think their entire car is actually worth.
Almost two-thirds (64 per cent) said unexpected car repair bills caused them stress, while 44 per cent had experienced two or more surprise bills over the past year.
Nearly a third (31 per cent) have had a bill of £400 or more in the past year for an unanticipated but essential maintenance item, while 10 per cent have had a single bill of £1,000 or more.
More than four in 10 (43 per cent) admit they suspect it may be more economical to buy and run a newer car rather than continuing to maintain their older one.
Motorpoint CEO Mark Carpenter 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.’
More than one in three (36 per cent) of the respondents said a lack of awareness of car finance options had seen them hang on to an old car rather than upgrade it.
Almost half of the drivers polled (46 per cent) planned to replace their car within the next three years, while a quarter say they will use finance to buy it.
Twenty-six per cent aren’t sure whether they’ll pay cash or use finance to spread the cost.
Mark Carpenter says it’s important for motorists to understand the finance options available
But 23 per cent said they’d be more open to using finance if they had someone who could explain the options to them. More than half (58 per cent) said they found car finance terms confusing.
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 online, over the phone or by speaking to an adviser in person.’
Last month, industry experts spoke to Car Dealer about the possible effect of the cost-of-living crisis on used car prices.
Among them was Cap HPI director of valuations Derren Martin, who appeared on Car Dealer Live to talk about it. You can watch the video of our interview with him at the top of this story.
