From generation to generation, there are many customs that get left behind. Buying music on a physical CD has been replaced by streaming software, for instance, while sending handwritten letters is now redundant in the age of instant messaging. One of the other major things that is slowly being phased out of everyday life is cash car ownership. As online car finance becomes the norm for many young drivers, the necessity of owning a vehicle is quickly turning into a thing of the past. Furthermore, it might not be such a bad thing.
For six consecutive months, the sale figures for new cars in the UK have been dramatically falling. Until recently, car sales have been going up and up every year. However, in 2017, we are expected to witness the first annual decline in new car sales in over five years. The last time this happened was in 2011. While 2011’s statistics were anomalies many experts predict that 2017’s mark the beginning of a continuous drop in new car sales.
Buying a new car is not an expense that many young people can afford to make anymore. Coupled with enormous insurance premiums and rising petrol costs, as well as road taxes and licence fees, young people will have to cough up thousands of pounds to own their first vehicle. This is unfeasible for a generation that, for the first time ever, is financially worse off than the one before it. It is hard not to see why young drivers would look for a more cost-effective alternative.
Car finance has risen as a viable alternative in the last few years. As new car sales have plummeted, the amount of drivers choosing to purchase a car on finance has been steadily increasing. It has been particularly popular in rural areas – in some major cities, many young people have simply chosen not to drive and rely on public transport or firms such as Uber. Car finance allows you to easily manage your finances by paying for your car month by month. By doing this, you can also invest in higher quality vehicles with reduced insurance premiums and a slimmer chance of maintenance work. Therefore always good to do your research and check car finance options. and deals available.
It is too early to tell whether car finance will ultimately make car ownership a thing of the past. However, statistics show us that young people predominantly favour it as a way of getting behind the wheel. Should this trend continue, car ownership may well be something we talk about in the past tense.