Older drivers overtaking youngsters in new car purchases

Retirees in Britain are twice as likely as younger motorists to buy a new car, according to a new report by AA Personal Loans.

Some 43 per cent of people over the age of 50 are expected to buy a new vehicle in the next 12 months, compared to 23 per cent of those under the age of 50.

Overall, the AA estimates that 7.5 million cars are expected to change ownership over the next year.

The research was undertaken as part of the AA’s series of Deals on Wheels reports, which found that 30 per cent of people planning on buying a new car in the coming year intend to buy a brand new vehicle and 65 per cent plan to purchase second hand.

Lloyd East, general manager of AA Personal Loans, said: “With increasing costs of bringing up a family, people under 50 are finding it more difficult to afford the luxuries in life.

“Although buying a brand new car offers the peace of mind that it has a full guarantee and manufacturer backup, choosing second hand can be a financially savvy decision.”

The AA points out that its personal loans can be used for various expenses, including buying a vehicle, and that they include a six-month warranty for cars regardless of where they are purchased from.