Some 19% of adults in the UK will spend an average of £11,094 each on buying a brand new or second hand car this year, equating to a bumper £108 billion across the country as a whole.
The study, by American Express, also estimated that drivers will spend an average of £1,492 per car this year on running costs, broken down as follows:
- Fuel: £461
- Insurance: £311
- Maintenance (eg, service/MOT): £222
- Tyres: £142
- Road side assistance: £80
- Additional parking fees: £64
- Washing/valeting: £63
- Parking permits: £55
- Windscreen repairs: £49
- Accessories (eg, new stereo, air fresheners): £45
London topped the table for splashing out the most on a new or second hand motor at £14,557 each, followed by the East Midlands (£13,831), Scotland (£13,191), North East England (£12,591) and South East England (£10,373). In contrast, at the other end of the table, Welsh and Northern Irish motorists plan to keep their spending at four figures, budgeting £9,282 and £8,842 respectively.
“For many, owning a car means freedom, and while this freedom can come at a cost there are some savvy ways to manage the finances linked to buying and running a car,” Jenny Cheung, a director at American Express said. “By putting car-related expenses on a credit or charge card that offers rewards or cashback, you can get something back on your spending.”
According to the study, running costs remain at the front of consumers’ minds when it comes to deciding whether to purchase a new or second hand car – 68% of those surveyed cited this as the main consideration ahead of efficiency (53%) and comfort (46%).