The wealth divide between young people and old people in the United Kingdom is higher than it has ever been. Millenials in the 21st century are faced with a higher cost of living than generations before them, coupled with stagnated wages and government-imposed austerity measures. Large purchases are therefore very difficult for young people in this day and age. House ownership is at an all-time low with most millenials forced to stay with their parents or rent instead. Meanwhile, most young people are living with several thousands of pounds of student debt that often exceeds £30,000. This has also affected the car buying market, as demonstrated by new research from Carwow.
They polled 2000 car owners to find out how many had been able to purchase their own car compared to using an alternative like online car finance. They discovered that 89% of people over the age of 55 had bought their own vehicle and just 11% were using car finance to pay for it in monthly or weekly instalments. This figure is a lot higher for young people. 17% of drivers between the ages of 18 and 24 found themselves unable to buy their own car. The research not only proves that making large purchases such as cars is more difficult for young people; it shows how online car finance is fast becoming a viable solution for this problem among millennial drivers.
Car finance allows customers to pay for their car over several months rather than in a one-off expensive cash transaction. By negating the need to save up thousands of pounds, car finance makes it easier for young people who need a car but may be in internships, apprenticeships, part-time employment or full-time education. They can manage their money much better on a short-term basis; there is no need to be saddled with even more debt just to own a car.
One of the most attractive things about paying for a vehicle via online car finance is that you are no longer limited in your choice. Without this option, most young people would be forced to buy cheap, old cars that may come with incredibly high insurance premiums and last no more than a few years. However, online car finance allows young people who pay just slightly more every month to acquire new vehicles from prestigious and respected manufacturers. This was highlighted as a very important factor among millenials. 70% of the young people surveyed said they chose car finance because they wanted to drive a new car rather than an old second-hand model.