Why financing a car can be sensible option for young drivers

Simon Gray, managing director of Credo Asset Finance. Picture: Archant library

Simon Gray, managing director of Credo Asset Finance. Picture: Archant library - 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.

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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.

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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

Facebook /CredoAssetFinance

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