Buying a new or even second-hand car is a difficult task.

Effectively, it’s a lottery, and because of that, it is easy to lose sight of your spending limits.

When optional extras become involved, resisting the pressure to upgrade can prove very difficult.

Exciting times

According to new research, more than a fifth of motorists (22%) have spent more on a car than they intended.

Younger drivers are more likely to break the bank, with over a third of motorists aged 18 to 24 (34%) guilty of overspending.

In comparison, less than a fifth (19%) of the over-65s admitted to splashing more cash than they meant to.

Again, it seems that the young brain struggles to maintain a grip on responsibility and not be distracted by exciting opportunities.

Extra appeal

A third of drivers (34%) say the car’s unique features were what convinced them to break the bank, while a fifth (19%) ascribe their lavish spending to the fact that the vehicle was their dream car.

More than one in ten (12%) say they spent more than they intended in a bid to ‘cheer themselves up’, and another 4% confessed that they were indulging in a spot of retail therapy.

‘Pushy salespeople’ were blamed by 6% of car buyers, with younger motorists more likely to fall prey to hard-sell tactics. Nearly one in seven drivers aged under 34 (13%) blamed a salesperson for their overspending, falling to just 5% of more worldly-wise over-65s.

Top overspending reasons

Reason for overspending
Proportion
The car’s unique features
34%
It was my dream car
19%
To cheer myself up
12%
A pushy salesperson
6%
Retail therapy
4%
To look good on the driveway
2%
To impress work colleagues
1%
To impress neighbours
1%

Source: AA Car Finance

Who’s paying the price

More than half of those who spent more than they meant to (53%) were paying with cash, compared with a third of motorists using car finance (37%).

Mark Attwell, Director at AA Car Finance, comments: “Shopping for a new car can be immensely exciting, and when all the options are in front of you, it’s easy to feel like a kid in a candy shop.

“It’s important to set yourself a budget so you don’t get carried away, no matter how enticing the car’s features are.

“Those buying vehicles with car finance were less likely to spend more than intended, so if you’re worried about breaking the bank, it could be a good way to ensure you stick to your budget.”