38% Of Parents Pay For Children’s First Car
Young drivers who have just passed their test may well be hoping to buy a fancy new car and head off on to the open road.
However, for a lot of people, this dream is just a fantasy as 38 per cent of parents still have to help their children pay for their first automobile because they cannot afford to purchase one themselves.
According to Sainsbury’s Bank’s Family Finance Report entitled ‘The Family Lifecycle – The Learner Years’, this is the same number of people who contribute to their youngsters’ university / living expenses, and more than those paying towards rent (23 per cent), property deposits (18 per cent) and gap year travel plans (eight per cent).
The data revealed that parents spend an average of £9,590 on their children’s first car, often taking out a loan to help them with this purchase.
Simon Ranson, head of banking at Sainsbury’s Bank, said: “Providing support to grown-up children is something that parents are having to factor into their financial planning nowadays.”
He added that many youngsters “struggle to achieve financial independence” and, subsequently, have to depend on their mums and dads for monetary support.
The research shows the average age parents expect their children to stand on their own two feet is 29, while almost a quarter (24 per cent) believe they should be financially independent between 21 and 25.
Drivers who have just got their licence and want to get their own car could always opt for a second-hand motor and add features to make it look modern. Many people use chrome plating services to bling up their wheels, side view mirrors, gear stick and door handles for a more youthful appearance to the vehicle.