Why financing a car can be sensible option for young drivers
- Credit: supplied
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.
You may also want to watch:
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.
- 1 'It's not even that short' - schoolboy, 14, put in isolation due to haircut
- 2 Part of A47 closed after concerns for woman’s welfare
- 3 Fresh calls for action over 'unacceptable' queues at A11 roundabout
- 4 Holidaymakers rescued after boat lodged under bridge
- 5 Bargain Hunt films at Norfolk collectables shop
- 6 Nick Knowles joins outcry as Norfolk police told to close Twitter accounts
- 7 Hundreds flock to see exotic birds in Yarmouth bushes
- 8 'Red-and-white spray paint doesn't count' - three danger lorries stopped
- 9 Two Norfolk restaurants in top five 'secret' places to eat on English coast
- 10 Administrators appointed at AF Biomass
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.