New research finds that 78% of people believe car ownership is becoming unaffordable.

The work by bad credit car finance provider, Go Car Credit, looks into national views on car ownership.

Personal priorities

Deposits on new cars are the usually the biggest expense in the age of Personal Contract Purchases (PCP). However, additional financial responsibilities that come along with car ownership are now becoming ongoing concerns. This includes, but isn’t limited to, repair costs, fuel, and insurance. Alongside this, the study reveals which car brands are cheaper to run in the long run.

The national survey found that:

  • 78% of people believe that car ownership has become unaffordable. This includes fuel, insurance, running costs, MOTs etc.
  • 47% of people have at least 1 car on their property
  • Over half of people overall believe car ownership has become too expensive
  • 82% of people say fuel is the biggest factor to this
  • People also believed that Ford was one of the most reliable cars

Reasoning on the road

The survey also asked: “To what extent do you agree that car ownership has become unaffordable due to the rising cost of cars?” (Car price/fuel/maintenance costs).

It found that 78% of people believe that car ownership has become unaffordable. Th concerns are based on initial purchase price, depreciation, average cost for a full tank of fuel, miles from a full tank, cost per mile, and insurance group cost.

The report also ranked the latest and most popular models and how thy rank in affordability. In joint first place, the most affordable cars to run over time are the Vauxhall Corsa Design and the Ford Fiesta Zetec. The Ford Kuga came in last place due to how much it would cost you to run the car over a long period of time.

The point system uses the initial purchase price, depreciation, average cost of for a full fuel tank, how many miles you can get on a full tank, cost per mile and insurance group.

Must haves

Hayley O’Connor at Go Car Credit says: “Car ownership is a real necessity for many people either for commuting to work, or for driving around a younger family. Fuel prices have recently reached record levels so there is a level of trepidation about purchasing a car. It’s important to think about what is affordable long term. As a responsible lender, we offer car finance to those who may struggle to get credit from mainstream lenders, by making sure it is an affordable option for anyone who comes to us for help.”

Additional findings include:

  • Women find Ford a more reliable car than Men
  • 51% of people are using their car less to save themselves money
  • 15% of people are letting broken parts of their car go unfixed
  • 10% of people are avoiding servicing their car
  • Less than 3% of people believed having a car is currently affordable
  • 84% put the affordability of running a car down to current fuel costs

Fuelling the problems

A whopping 82% of those surveyed say that rising fuel prices are the biggest barrier to car ownership. It is the 25-34 bracket who were most dissuaded by rising fuel prices. Other factors at play included rising purchase price of vehicle, cost of maintenance and repairs, and insurance being the biggest perceived barriers to car affordability.

Sparing use

Nearly 50% of respondents answer that they are using their car less to save money. Worryingly, 15%, admit to letting broken parts or damage to go unfixed.

However, only 3% claimed that they were opting to car share. So, whilst running a car has impacted their usage, their desire to drive and own their own car remains relatively unchanged. Arguably, working from home culture has facilitated those surveyed to use their car less (and use less fuel) as a way of saving money.

Pricing popularity

The report also provides a league table of the on-going cost of popular cars. It uses a point system based on initial purchase price, depreciation, average cost for a full tank of fuel, miles from a full tank, cost per mile, and insurance group cost.

Car make league table

This is broken down to reveal how different makes and models change across a variety of factors.

Initial purchase price
Cheapest – Vauxhall Corsa
Most expensive – Ford Kuga

Depreciation
Worst – Vauxhall Zafira
Best – Ford Puma

Average cost for full tank fuel
Cheapest – MINI & Vauxhall Corsa
Most expensive – Vauxhall Zafira

How many miles you get on full tank
Most miles – Kia Niro
Least miles – MINI

Cost per mile
Cheapest – Kia Niro
Most expensive – Hyundai Tucson

Insurance group cost 
Cheapest – Vauxhall Corsa
Most expensive – Kia Niro

 

You can read the full report here.