Bank of Mum and Dad pays for half of young Brits' first cars

Abigail Fenton
·Writer
·2 min read
Evgeny Tchebotarev/Unsplash
About 53% of young people's parents help them afford their first car. Photo: Evgeny Tchebotarev/Unsplash

Parents help more than half of young people in the UK buy their first car, research suggests.

About 53% of 18 to 34-year-olds said their parents contributed some amount of money towards them buying a new car, according to a survey of 500 by Bristol Street Motors.

The amount most commonly contributed by parents is £5,000 ($6,844) – about the price of a 2012 Volkswagen Polo. However, 16% of young people receive more than £10,000.

According to Statista, the average 22- to 29-year-old earns £25,980 a year, while the average 18 to 21-year-old earns £18,139 a year.

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The research reveals that the average 17- to 24-year-old buying their first car could expect to pay £4,276 for the car, £2,204 in car insurance, £54.85 for an MOT and £25 in car tax.

This comes to £6,559.85 before they even get on the road and must start paying for petrol, breakdown cover and servicing.

This is the equivalent of quarter of a 22 to 29-year-old’s salary or 36% of someone under 22-years-old.

The research also found women are more likely to receive substantial help when purchasing a car than then male counterparts.

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Two in five (38%) female motorists said they had received at least £5,000 to help purchase a car, compared with less than a quarter (24%) of men.

One in five young adults also get help paying their car insurance. But as young drivers get older, parents generally expect them to begin paying for their own car insurance.

Only 8% of parents contribute to their children’s car insurance between the ages of 25 and 34. This is compared to nearly a quarter (23%) of parents who have children between 18 and 24.

And one in 10 parents save their kids £1,170 per year in operating costs such as MOTs and services.

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