Do You Climb The Motor Ladder?

Mon 18th Oct 2021

New research from a leading automotive insurer has found that car buyers are likely to spend 30 per cent more on each car they buy, revealing a previously unknown motoring ownership ladder.

The analysis, from Direct Line Motor Insurance, found that we incrementally pay more for each of our first, second, third, fourth and fifth cars, but with the average price of our first car only just over £3k, we aren’t paying a fortune for our fifth car, £8,500 on average.

In eight out of ten cases, the cars we buy are used or nearly new, 12 per cent are likely to be brand new.

Unsurprisingly, a newer car is the request for the younger age bracket, with the average first car being around 5.6 years old. The more mature drivers appear to trust older models, with an average car age of 7.9 for the 35 to 54 age bracket.

“Having a newer car is of clear importance to the younger generation who are not only spending more on their cars but also appear to be changing them more often too,” said Lorraine Price, Head of Direct Line Motor Insurance.

“The research suggests the rate of buying new cars slows as you get older, possibly as a result of being able to invest a greater amount of income on newer vehicles.

“When updating and upgrading your car, it's important to remember to let your car insurance provider know. 

“This can be as simple as updating your details online and entering your new registration plate. Failing to do this means you won't be insured on your new car and will invalidate your existing policy.”