According to new research by Churchill Expert, most young drivers aren’t looking to buy a car. Instead, rather like a mobile phone and broadband contracts, or gym membership, they are looking flexible deals.

Flexible cars

Nearly two-thirds (59%) of young drivers (18–34 year olds) are considering flexible car ownership models.

This represents a stark contrast to the 15% of drivers aged 55 and above and the national average of 33%. This is a significant shift in car ownership preferences across different generations, but fits with modern trends.

Flexible ownership models include traditional and short-term rentals, Personal Contract Purchase (PCP), Personal Contract Hire (PCH), employee salary sacrifice schemes and car subscriptions. This compares to traditional methods like outright ownership and Hire Purchase (HP).

Stuck in our ways

There also appears to be a disparity in current car ownership models between age groups.

Only half (53%) of young drivers own their cars outright, compared to a significant 82% among those aged 55 and above.

When it comes to company cars and salary sacrifice schemes, these appear to be driving the transition to flexible ownership.

Over half (56%) of young drivers said employee schemes make them more likely to switch to flexible ownership models.

This stands in contrast to the national average of one-third (31%) and one-in-ten (11%) over 55-year-olds.

Modern style

Subscription type models of ownership re becoming the norm for many young people, in addition to cars.

More than half (54%) of 18-34 year-olds expressed their openness to exploring subscription to alternative vehicle options. This contrasts to a mere 6% of those aged 55 and above and the national average of 25%.

Alternative vehicle preferences include: 17% expressed interest in motorbikes (7% national average), 15% for bicycles (9% national average), 15% for mopeds (6%) and 16% for vans (8% national average).

Times are a changing

“Our research shows that young drivers are at the forefront of embracing flexible ownership models, reflecting their evolving needs and priorities,” states Nicola Richmond, head of Churchill Expert Flexible Fleet Partnerships.

“We have seen a shift in ownership trends across several product areas, from TV and music streaming services to mobile phones.

“The demand for flexible ownership and the willingness to explore alternative vehicle types shows the landscape of car ownership is also changing.”

Breakdown of current car ownership models – Churchill Expert, 2023:

Car access model Percentage of all motorists Percentage of young motorists
Outright ownership 70 53
Personal Contract Purchase (PCP) 9 11
Personal Contract Hire (PCH) 6 11
Driving someone else’s car 5 8
Hire Purchase (HP) 3 5
Through work (e.g. company car or salary sacrifice) 3 5
Car subscription 1 4
Short-term rental 0 2
Carshare 0 1
Traditional rental 0 1
Other / have no access to a car 1 0