Over two-thirds of over 55s bought car outright

Over two-thirds (69 per cent) of car owners over 55 bought their car outright without using finance, compared to half (50 per cent) of 34 – 54yrs and a third (33 per cent) of under 34s, according to a survey of over 2,000 UK drivers.

On average, over half (56 per cent) of cars were bought outright via cash or debit card, 10 per cent were bought on hire purchase, 11 per cent using personal contract purchase (PCP), 5 per cent loan from a bank, 5 per cent on lease and 3 per cent were given as a gift.

The Opinium survey, commissioned by InsuretheGap, an independent provider of GAP (Guaranteed Asset Protection) car insurance, finds that almost one in five (17 per cent) under 34s use a PCP to finance a car purchase, compared to just 9 per cent of over 55s.

Northern Ireland is the region most likely to buy a car outright (63 per cent), followed by the South West (61 per cent) and South East (60 per cent) of England, compared to Wales (55 per cent) and Scotland (56 per cent), and the West Midlands in England is the least likely to (46 per cent).

Only 2 per cent of drivers change their car every year, with 4 per cent changing every two years and almost a quarter (24 per cent) changing their car every two to four years. In the North East of England, 42 per cent of drivers change cars every two to four years, the highest region in the survey.

Men change their cars more frequently than women, with 34 per cent of men changing their car at least every four years compared to 25 per cent of women.

A fifth (21 per cent) of drivers will keep their vehicle until the car breaks down or costs more to repair then it is worth (women 27 per cent v men 16 per cent).

Ben Wooltorton, Chief Operating Officer of InsuretheGap.com, said: “A lot of drivers clearly like to change their car every few years and are prepared to pay for this privilege, whilst others are more than happy to make do until their car has clapped-out.

He continues: “However people pay for their cars, buying a car is one of the biggest investments that most people will make, and drivers should consider how best to protect their investment. Cars depreciate quickly, and if a car is written off or stolen, insurance companies will only pay the value of the car at the time of the incident, not the amount that was paid for it. Policies from InsuretheGap.com protect drivers from this, and cost a fraction of those sold by the car dealerships.”