Britons to spend £108 billion on cars this year: American Express study

Tuesday 28th February 2017 | 0 Comments
Top 5 regions, expenditure on new and 2nd hand cars (average price)

  1. London: £14,557
  2. East Midlands: £13,831
  3. Scotland: £13,191
  4. North East: £12,591
  5. South East: £10,373

With excitement revving up for the release of ‘17’ number plates on 1 March, buying a car is a significant purchase. A new study from American Express has found that 19 per cent of adults will spend an average of £11,094 buying a brand new or second hand car this year, equating to a bumper £1081 billion across the UK as a whole.

In addition, it’s not just the outlay for the purchase to consider as the research reveals that drivers will spend an average of £1,492 per car this year on running costs.

London tops 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) and Scotland (£13,191). Welsh and Northern Irish motorists plan to keep their spending at four figures, budgeting £9,282 and £8,842 respectively.

Jenny Cheung, director at American Express says, “For many, owning a car means freedom. While this freedom can come at a cost, there are some savvy ways to manage the finances linked to buying and running a car. By putting car related expenses on a credit or charge card that offers rewards or cashback, you can get something back on your spending, which means you can treat yourself later in the year.”

Running costs remain front and centre of consumers’ minds when it comes to deciding whether to purchase a new or second hand car. Almost seven in ten (68 per cent) of those surveyed cite this as the main consideration ahead of efficiency (53 per cent) and comfort (46 per cent).

Associated annual costs of running a car (average spend)

  • Fuel: £461
  • Insurance: £311
  • Maintenance e.g. service / MOT: £222
  • Tyres: £142
  • Road side assistance: £80
  • Additional parking fees: £64
  • Washing/valeting: £63
  • Parking permits: £55
  • Windscreen repairs: £49
  • Accessories e.g. new stereo, air fresheners: £45

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Category: UK News