A third (33%) of Welsh drivers say their monthly car payments are their second highest expense, after their rent or mortgage monthly payments.
Drivers in the North East (37%) and West Midlands’ (36%) regions of England and Scotland (35%) are the most likely to agree with this.
The Opinium survey of Welsh drivers among 2000 UK drivers, commissioned by InsuretheGap.com, an independent provider of Guaranteed Asset Protection insurance for new and second-hand cars, also reveals that a quarter (25%) of under 34s say their monthly car payments cost as much or more than their rent or mortgage payments.
A fifth (21%) of Welsh drivers prefer to budget and pay for a car on a monthly basis, using finance methods including leasing, hire purchase or a loan, rather than worrying about a car’s total cost, knowing they can upgrade when their finance contract runs out. Deeper analysis of the Welsh survey showed men 28% v women 15% and younger age groups are more likely to do this, with almost half (46%) of under 34s running their car finances this way, compared to only 16% of over 55s.
Ben Wooltorton, Chief Operating Officer, InsuretheGap.com said, “Owning a car is still a substantial cost for people, and is clearly a heavy burden particularly for younger people.
“When so much of their income is going on a car, drivers should be protecting their investment. If a car is written off or stolen, the insurance company will usually only pay the market value of the car, not what was paid for it, so drivers could face a financial shortfall, particularly if they still have a finance agreement or loan to pay off. A GAP insurance policy from a specialist insurance provider, like InsuretheGap, protects drivers from this.”