18-24 Year Olds Favour Leasing to get on the Road
What do you think of when you remember your very first car?
Old banger? Heavy mileage? Rust bucket? But it didn’t matter, you loved it anyway!
Now in 2015 meet the ‘direct debit generation’. Young drivers are upgrading their cars as often as they are upgrading their iPhones. Research by Experian has revealed those aged 41+ typically paid less than £2,000 for their first car. More than half of 18-24 year olds currently have a first car that values £11,001 - £20,000! How are they managing that? The answer is simple … Leasing!
1 in 5 of those aged 18-24 are choosing to lease their vehicle, these figures are more than double any other age group. Now just over a third of all cars being driven by younger motorists are less than 1 year old. Only 5% of 41-45 year olds choose to lease a vehicle and only 6% of 46-50 year olds. A massive 70% of 61+ year olds use cash and savings to purchase a car.
So could the young be right? Is leasing the best option? Should the elders now be listening to the youngsters? What are the benefits of leasing the more mature members of society are missing out on?
Car Leasing Benefits
- You pay a fixed monthly cost for your car
- You can choose any make and model of car, you may be able to afford to lease a car you would never be able to pay for outright
- Maintenance packages offered with lease vehicles mean there’s no need to find extra money for servicing and tyres throughout the lease period
- Never dread the annual MOT again, a new car is less likely to go wrong and will be covered by a manufacturers guarantee.
- No worries of depreciation, at the end of your lease just hand back the old car and pick a new one!
As the cost of motoring increases, the low initial deposit and low monthly payments needed for a lease car are winning young motorists over and providing the fastest route to get on the road. But, there’s one thing the more mature driver has in their favour – the cost of car insurance. Those under 25 may choose leasing as a quick and affordable way to get on the road, but, they will pay on average £810 per year for their car insurance.
The advice to young drivers from Rivervale Leasing is to pick a car to lease wisely to keep your insurance costs low. Our top picks can be found in our blog ‘The Top Cars to Lease for Young Drivers’.
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The comments above do not necessarily reflect Rivervale's views unless clearly stated.