How Young Brits Can Afford Motoring in 2023 

 

‘Why are more young people abandoning car ownership’, ‘the reasons why millennials aren’t as car crazed as before’, and ‘young people are driving much less’ are just a handful of headlines which have cropped up of late. 

How Young Brits Can Afford Motoring in 2023
But what is the real reasoning the younger generation aren’t as keen to get behind the wheel as their parents? Yes, some may say that it’s the alternative options available like instant rides with uber, while others point to the environmental aspect but, you’d be foolish to discount affordability as the main reason… 

 

For young drivers, especially in the UK, the upfront costs associated with motoring can be pretty daunting. According to MoneySuperMarket, the average insurance premium for 17-19 year olds buying fully-comp insurance is £1,375 a year.  

 

That’s before we consider the initial outlay of the vehicle, driving lessons, tests, an initial deposit, maintenance, and more. 

 

A solution is required – and we’ve got one. 

 
 

Vehicle leasing  

 
 

Vehicle leasing, put simply, is a longer term rental agreement, which, according to carwow.co.uk, has grown drastically in popularity in recent years. The website’s report from Autumn 2022 highlights that more than 5 million vehicles are leased in the UK, with 1.9 million of these private leases. 

 

For those unsure, the main difference between leasing and financing is the ownership. WIth a leasing vehicle, you’ll put down an initial deposit, make monthly payments, usually between 24 and 48 months, and once you reach the end of that term, you hand the car back – the lessee is not contractually obliged to take the vehicle. Although, in certain circumstances, the lessor may offer them the opportunity to buy the vehicle outright.  

 

But why would I want to pay for something that’s never actually mine?  

 

The pros of leasing a car as opposed to buying outright or financing are:  

 

• The monthly payments of a lease usually tend to be cheaper than that of a finance deal. 
• Lease agreements can often be over a shorter term than trying to finance a new car through a personal loan – allowing you to regularly change vehicles and stay up to date with the latest trends in the motoring industry.  
• Due to the fact that you’re not tied into a balloon payment at the end of the lease, it’s much easier for budgeting. You know your initial deposit amount, and you know what you’re expected to pay on a monthly basis.  

 

Why then, is leasing, in 2023, the most appropriate solution to young brits looking for a new car? 

 

Well, in 2023:  

 
 

Leasing allows you to improve your credit score

 

 

Leasing a car gives younger drivers the option to drastically improve their credit score. If you take out a car lease and, very importantly, keep up with your payments, you can use leasing as an idealistic way of enhancing your credit score.  

 

A good credit score is far more than just using a credit card to make purchases. Gaining true financial independence will require both time and effort, that’s why it’s crucial to start early, as turning your attention to this score in later life will, more often than not, result in you paying more for things. 

 

The importance of this cannot be understated due to the domino effect that it has on adult life – can’t get a credit card because your credit score is low but you can’t improve your credit score because you don’t have credit? It’s a vicious cycle that can have detrimental impacts on your ability to get a mortgage but one that can be resolved through leasing! 

 

Budgeting is made easy by car leasing as, like we’ve similarly mentioned, your monthly repayments are always the same – that said, be sure to only take out a leasing contract that you can afford! 

 

If you can’t obtain the lease on your own, you may be able to look into a guarantor leasing agreement. 

 
 

Superior options

 
 

Access to the latest models on the market, that would otherwise be fairly complex without a pretty hefty budget.  

 

Some of the most popular and best rated vehicles for younger drivers available through a leading agreement include the Volkswagen Polo, the Vauxhall Corsa, the Fiat 500, the Seat Ibiza, and the Hyundai i10.  

 
 

Reliability

 
 

Finally, for those who continually find themselves on the go and don’t want to factor vehicle maintenance into their schedule, leasing certainly is a more favourable option than buying your own car. A full manufacturer warranty comes with every lease deal, therefore anything that goes wrong with the vehicle that is not the fault of the driver, will be covered.  

 

Similarly, certain leasing companies also offer maintenance packages that include MOT, servicing, and repairs to general wear and tear.  

 

 

The inevitable question now then is, how difficult is it to lease a vehicle as a new driver? Well, the good news is, if you’re 18 years old, have a full UK driving licence, and a good credit score (which can be helped by the leasing deal) you should be able to secure a vehicle.