Cars on credit

Did you know that one in three 18-24 year olds drives a car that is new or less than 12 months old?

This is just one of a raft of findings revealed in new research about the changing face of car finance, carried out by credit reference agency Experian.

Other fascinating facts include…

Generation lease
One in five 18-24 year olds are choosing to lease their current car, more than double any other age group – just 5% of 41-45 year olds, and 6% of 46-50 year olds choose this type of credit

Generational divide
43% of 25-30 year olds paid between £8,001- £11,000 for their first car

No more bangers
32% of 36-40 year olds admitted to having paid less than £8,000 for their wheels

Lavish Londoners
When it comes to people’s first cars, the UK’s capital is bucking the national trend with over half (51%) of Londoners given their first car by their parents – nearly double the national average of 26%

Capital time
More than a third (38%) of Londoners report that their first car was worth between £8,001 and £11,000. This is over five times the national average, and 12 times as many as other UK regions

Expensive cars
Almost two-thirds (61%) of 18-24 year olds say they currently drive cars worth between £11,001 and £20,000

Current car
The older the driver, the less they’ve paid for their current car, with 43% of 36-40 year olds admitting to having paid less than £8,000

Silver savers
Older people are more likely to use cash or savings – up to 70% amongst those aged 61 and over

Experian has just launched a new Car Finance Guide which helps to demystify the credit referencing process and provide an overview of the most common options for buying cars on credit, along with tips and guidance around how your credit report can help you get access to the best deals.