
Low emission car insurance
We explain how low emission cars could affect insurance and other costs, plus how to keep your insurance premium low.
Read more…Taking out a car loan or using finance options can allow you to drive away in your dream motor. But just how much are us Brits spending on these loans? We did some research to find out.
Buying your car on finance is a way of spreading the cost over a longer period of time. So how many of us are buying our cars this way?
Over 2.4 million cars were purchased on finance contracts in 2018, up 2% from 2017. Despite an increase on the year before, the growth in cars purchased on finance has been slowing. 2018 growth represents the smallest growth in the last six years.
Year | Total volume | Percentage change |
---|---|---|
2013 | 1.71 million | +18% |
2014 | 1.94 million | +13% |
2015 | 2.13 million | +10% |
2016 | 2.3 million | +8% |
2017 | 2.35 million | +2% |
April 2018* | 2.41 million | +2% |
The car finance contract market is growing in value each year in the UK. In 2018 this market was worth over £37 billion, up from £34 billion the year before.
Year | Total value | Annual change |
---|---|---|
2013 | £20.8 billion | 25% |
2014 | £24.7 billion | 19% |
2015 | £28.3 billion | 15% |
2016 | £31.6 billion | 12% |
2017 | £34.2 billion | 8% |
2018 | £37.4 billion | 5% |
Car financing options are available on both new and used cars, so which are we using most of our loans for? Interestingly, the numbers of new and used cars purchased with finance are almost identical. The difference between the two lies in the amount we are borrowing for new cars, which, as you would expect, is more.
In April 2019, over 20,000 cars were purchased through finance in the UK. Of those, 76,000 were new cars and 134,000 were used cars. Overall, the number of cars purchased on finance has fallen by 2% compared to this time last year, however, used car finance purchases are up 1% compared to a 7% reduction in new car finance purchases.
Interestingly, the value of advances across the 2 categories is almost identical despite the difference in the number of cars. This shows that despite buying fewer new cars on finance, we are borrowing more to afford them.
Car purchase type | Number of cars | Percentage change on previous year (April 2018) |
---|---|---|
New | 76,042 | -7% |
Used | 134,073 | 1% |
Total | 210,115 | -2% |
Car purchase type | Value of advances | Percentage change on previous year (April 2019) |
---|---|---|
New | £1,603 million | -2% |
Used | £1,632 million | 4% |
Total | £3,236 million | 1% |
From car insurance to petrol, running a car can be pricey. The latest statistics show that the average cost of running your car per month is over £160, and more than double if your car is on finance. That’s nearly £2,000 a year, not including cars with finance payments.
Including finance payments, the average cost of running a car for a month is almost £390. That’s over £4,500 a year. Explore the graphics below to see a more detailed breakdown of exactly where all that money is going.
Item | Average monthly spend |
---|---|
Fuel | £67.63 |
Car insurance | £31.64 |
Routine maintenance and servicing | £15.96 |
Unexpected repairs and breakdowns | £13.26 |
Vehicle excise duty (road tax) | £12.16 |
Breakdown cover | £6.96 |
Parking permits and tickets | £6.89 |
Cleaning | £4.15 |
Fines | £3.69 |
Monthly average total (excluding finance) | £162.33 |
Finance | £226.12 |
Monthly average total (including finance payments) | £388.45 |
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