- Average amount spent on first car in proportion to salary has increased by 44% since 2000
- The average driver spent 38% of their annual income to buy the first car in 2020
- We reveal top tips for first time car buyers
Forget the days of new young drivers hitting the road in a Ford Fiesta, Vauxhall Corsa or Fiat 500 as their first motor – instead, they’re turning to the flashy models from Audi, BMW and Mercedes Benz, which make their way to the top. Looking forward to showing off to friends. in person and on social media.
According to Mor Than data, the most popular brand for new drivers from 25 to now is BMW, followed by Ford, Audi, and then Mercedes.
It was found that even new drivers are spending a higher share of their income on the first car purchase than they were two decades ago.
This suggests that they are not willing to deal for the motor first, but instead preferring more expensive manufacturers.
New drivers are spending more of their income on their first car than they were two decades ago
Most Popular Cars for First Time Buyers
The research found that Ford is the most popular car manufacture when it comes to first-time purchases, with 24 percent of all age groups buying cars.
Meanwhile, 9 percent said they bought Vauxhall, with 8 percent choosing Minis and 6 percent buying Volkswagen.
However, as you narrow it down to age, it seems young people are buying more expensive models.
While the most common first car among those over 55 was the Ford, today’s first-time drivers are upgrading, with BMWs being the most likely purchase for those under 25.
Audis and Mercedes-Benz also made it to the top four, highlighting the need for young motorists to have high-priced cars.
cheapest models for cars
More Than also rounds up the cheapest new models, the ten most likely to buy cars under the age of 25.
The calculations below are calculated as ‘on the road’ prices, so include the list price of the car, registration and delivery charges and one year’s road tax.
1. BMW: 1 Series, £25,915 . From
2. Ford: Fiesta £16,645 . From
3. Audi: A1 £18,485 . From
4. Mercedes-Benz: £24,100 . se a class
5. Toyota: Aygo £13,345 . From
6. Vauxhall: Corsa £17,015 . From
7. Nissan: Micra £14,340 . From
8. Kia: Rio £13,850 . From
9. Mini: £16,200 . from classic
10. Volkswagen: Up! £13,250. From
For some older drivers, even the cheapest one on the list can seem more expensive than they would be willing or able to pay first.
Pricey option: BMW is now the most popular car for new drivers under 25
|16-24 year olds||25-54 year olds||55+|
|1. BMW||1. Ford||1. Ford|
|2. Ford||2. Vauxhall||2. Mini|
|3. Audi||3. Volkswagen||3. Vauxhall|
|4. Mercedes-Benz||4. BMW||4. Volkswagen|
|5. Toyota||5. Peugeot||5. Austin|
|6. Vauxhall||6. Toyota||6. Nissan|
|7. Nissan||7. Nissan||7. Morris|
|8. Kia||8. Audi||8. Peugeot|
|9. Mini||9. Mini||9. Toyota|
|10. Volkswagen||10. Renault||10. Hyundai|
How much of their salary are new drivers spending?
The research found that the average amount a motorist spent on a motorist’s first car as a proportion of annual salary was 44 percent higher since 2000.
The average retail price of buyers’ first cars as a proportion of their annual income also increased from 25 percent between 2000 and 2009 to 36 percent between 2010 and 2019.
The higher spending trend appears to be set to continue with the average driver who bought a car for the first time in 2020 spending 38 percent of their annual income to do so.
What matters in a car for first time car drivers?
When it comes to buying behavior across generations, the research found that only 41 percent of people aged 16 to 24 said the purchase price was the most important consideration when buying their first car.
This compares with 52 percent of those aged 25 to 54 and 64 percent of those over the age of 55.
Some 23 percent of young people also say that the fuel source of their first car is the most important consideration compared to 12 percent of those over 55, perhaps highlighting the importance of environmental issues for the younger generation.
Meanwhile, when it comes to the main reasons why they bought their first car, 23 percent of those under the age of 25 say it was to impress their friends and family, compared to those over the age of 25. Only 10 percent of the people said so.
Only 18 percent of those under the age of 25 opted for a used car when buying their first car because they are cheaper, rising to 24 percent of those over 25.
This comes as the government recently introduced an eco-friendly petrol, E10, for refueling forecourts across the country, which means drivers buying a car produced before 2010 will have to undergo additional scrutiny.
Some 23% of youth say the fuel source of their first car is the most important consideration
How are new drivers financing their cars?
According to data from SMMT and The Finance and Leasing Association, some 1,003,269 new cars were registered between August 2020 and July 2021, of which 77 per cent were purchased using car finance.
There is also a growing demand for finance deals among new drivers, with 19 percent of first-time car buyers under the age of 25 saying they wish they knew more about available car finance plans before making a purchase, 25 Research from Peacock found, compared to only 8 percent of over.
Edward Barclay, Motor Product Manager, More Thanh, said: ‘The low interest rate environment and increased availability of finance deals in recent years are likely to be a contributing factor to more expensive first cars for new drivers.
‘While the total cost of cars makes up a substantial portion of annual income, finance deals are allowing buyers to spread out payments over time, making expensive models more affordable.
“We expect this trend to continue, especially as material and labor shortages are expected to drive up car production costs, which could lead to a further increase in the price of new cars.”
‘With people spending more…