Simon Gray, managing director of Credo Asset Finance, explaines why financing a car can make sense for young drivers.

Since 2008 the number of young people learning to drive has dropped by almost a fifth. With costs so high its understandable why many choose to delay learning or stop all together.

It should be an exciting time in a young person's life when they can break free but, unfortunately, this is no longer the case and it is now suggested the average cost of putting a learner teenage driver on the road is £5,000. Rising housing costs and student debt mean learning to drive is not a priority for many people.

One of the main reasons why many young people have stopped learning to drive is extortionate insurance costs, A 17-year-old student living in Cardiff, driving a two-year-old Ford Fiesta, with no claims or convictions, annual 7,000 mileage and a £250 excess, would typically pay £2,124 a year for standard insurance, according to Confused.com. And it's also rising by about 13% a year.

Driving lessons are also to blame for the high costs of learning to drive, as driving lessons alone could cost as much as £1,500 with tests. Lessons and insurance could add up to £3,000 or £4,000 and that's before a car has even been bought.

Buying a car is an important part of learning to drive for a young person but, when car prices are high and rising, it makes it even harder.

One option could be to buy a cheap old car but pay the price if it needs repairs and breaks down. The other option is buying a more expensive car but paying less for tax and repairs. The insurance could be higher but newer cars are safer and less likely to break down.

One option Credo Asset Finance has seen increasing is young people choosing to finance a car. This can be hugely beneficial to them because they get a new, or newer, car than they would without finance and there is no need to spend a large amount straight away, just low monthly repayments. Finance is a great option because it helps young adults grow a good credit score.

At Credo Asset Finance we pride ourselves on being able to find the right lender for any type of person – in the case of young adults we know we can help.

Feature sponsored by: Credo Asset Finance, 85 Yarmouth Road, Norwich, NR7 0HF.

Phone 01603 703180.

Email sales@credoassetfinance.com

Website www.credoassetfinance.com

Twitter @CredoFinance

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