Parents spend average of over £3,000 on their child's first car

Many young people turn to their families to help cover the costs.

British parents spend an average of £3,410 on their child’s first car, according to research commissioned by car reviews website Parkers.co.uk.

The survey of 2,000 mums and dads of 16 to 21 year-olds found that one in six helped their offspring to pay for their first vehicle, contributing an average of 45% of the total cost. A lucky 16% of young people had their parents pay the full amount.

Another 44% of parents help with the cost of their child’s car insurance, while a quarter also pay the road tax and a fifth contribute towards petrol and diesel.

With DVLA figures showing that around 414,000 people aged 21 or under passed their driving test between April 2018 and March 2019, parents could be spending a combined £340m per year on their first cars.

“The research shows just how much is spent on new cars for first time drivers,” said Keith Adams, editor of Parkers.co.uk.

“It’s amazing to see just what parents are prepared to spend on their children so they can experience the independence of driving.”

The study also found that over three quarters (77%) of those with more than one child said they plan to help them all equally with buying their first cars.

Four in ten (42%) parents who helped out set a budget beforehand, and one quarter researched which models are most suitable for new drivers.

As well as finding a suitable car, it’s worth taking time to research its history and check you’re paying a fair price.

“Buying a car can be stressful enough — more so if it’s for a loved one — so it’s so important to make sure that you’ve bought yourself a good one,” Adams said.

At the Insurance Factory we work with a carefully selected panel of leading insurers to find car insurance policies for specialist risks such as university students and drivers aged 21-24, as well as drivers with convictions and adverse claims history, high performance and modified cars and impounded vehicles. Contact us today for a quote!