- Auto Trader sees stock of £5,000 cars down 75% in last eight years
- The majority of young people between 17 and 24 years old say that having a car is important to them
Young drivers are being priced out of the car market due to a shortage of affordable vehicles, new research claims.
According to Auto Trader, there is a growing shortage of affordable cars for young drivers, and the number of vehicles under £5,000 has fallen by 75 per cent in the last eight years.
According to the Department of Transport, more than 700,000 young people aged between 17 and 20 have driving licences, but the lack of affordable wheels is another cost barrier for young drivers.
Auto Trader stock volumes of cars costing under £11k have fallen 46 per cent in eight years, while there are 75 per cent fewer cars under £5k.
Previously, more than half (58 per cent) of drivers aged 17 to 24 who bought a new car had scored a bargain under £11,000.
But with Auto Trader’s stock volume for this price band now falling by almost half (46 per cent) between January 2016 and 2024 (to 263,746), young drivers are facing restricted choice and higher upfront costs.
The lack of affordable stock is due to the impact of the pandemic on the supply of new cars, reducing the number of second-hand cars that then go on sale, increasing inflationary pressure on prices.
The Citroën C1 has been named the best car for Generation Z drivers according to new data from Independent Advisor
The Vauxhall Corsa came in second place – it’s one of the cheapest used cars to buy, with an average price of £2,127.
The Renault Clio came in third, with high insurance costs working against it – the average annual premium for Generation Z drivers is £3,099 a year.
There are still options available for drivers who need a bargain, and our recent roundup of the 10 best and cheapest used cars for young drivers finds the Citroen C1 to be the best second-hand buy for Gen Z drivers.
The Vauxhall Corsa, the cheapest used car costing an average of £2,127 and £2,395 a year in insurance, is the second best car for young drivers, while the more expensive but fuel-efficient Renault Clio is the second best car for young drivers. came third.
It’s not just the cost of the car that makes it difficult for young drivers to hit the road.
In March, we reported that it would cost a 17- to 20-year-old on average £7,609 during their first year of driving.
Money Supermarket’s Household Money Index places it as one of the biggest contributors to the skyrocketing cost of insurance.
Insurance for 17-year-olds increased by 67 percent and for 18-year-olds by 40 percent in just one year.
The main reason for the rising costs for young drivers came from the huge increase in insurance premiums, something This is Money has covered in detail.
Now the DVLA warns there is a “gap” of 1.1 million between the number of driving tests available and expected demand next year.
Young drivers’ desire to own their own car is greater than ever: a survey of 4,000 drivers for Auto Trader found that 70 percent of 17- to 24-year-olds say owning a car has become more important due to factors such as independence, mobility and unreliable public transportation.
The survey also found that most young drivers would like to opt for electric vehicles, but price remains a concern.
According to the research, 63 per cent of 17- to 24-year-olds say they would consider making the switch the next time they change cars, compared to 37 per cent of those aged 45 and over.
Currently, however, the average used price of a high-volume electric vehicle stood at £20,862 in April, compared to £16,703 across the car market, making it even more expensive for young drivers to buy a used electric vehicle.
