Car Buying Pressures: Exploring Car Costs, Social Influence & Discrimination

Buying a new or used car involves many considerations. From choosing where to make your purchase and knowing what to inspect when you see the car, to handling negotiations and understanding your buyer's rights - each step of the process can feel overwhelming.

Amid a cost of living crisis and an ever-growing influencer landscape, more Brits than ever are tackling financial hurdles alongside image and social pressures. 

The Car Buying Pressures study offers an in-depth look at the nation's car-buying traits and the reason behind their car-buying preferences. 

The results revealed:

According to our nationwide survey, the most common consideration for Brits is the vehicle cost and over two-thirds of drivers say it is the most important factor when upgrading their car. 

On average 1 in 5 Brits spend 15% of their paycheck on their car 

According to the 2024 ONS data, the median average UK monthly wage across all industry sectors is £2,334. In the Car Buying Habits national survey, 1 in 5 Brits said they spent on average £350 on their car a month - this equates to 15% of their monthly paycheck. 

Although public transport is substantially less, with Brits paying an average of £69 a month on buses, trains or trams, drivers say they’re unlikely to make the switch to public transport to save money.  

Two-thirds of Brits say the vehicle price is the most important consideration when buying a new car and only 3% of Brits said they would consider using public transport instead of upgrading their car. 

1 in 12 Brits (8%) only change car when it’s at breaking point

For millions of Brits, the notion of a new car is unattainable as 1 in 12 say they would only consider upgrading their car when it’s at breaking point. 

Buying a new or used car upfront is out of the question for many drivers, but even with finance options available, the rising cost of car ownership is forcing many Brits to put up with a car long after its use-by date. 

2 in 5 Brits would buy an electric car if it was more affordable

Two in 5 drivers said they would choose an electric car if their price tags were more affordable. 

While there's growing interest in EVs because they're cheaper to run and better for the environment, the initial cost is still a hurdle for many.

Brits feel social pressure to upgrade their cars

Keeping Up with the Joneses: 1 in 3 Brits feel peer pressure to upgrade car

The need to impress friends, family members and even colleagues has become a custom in the UK as 1 in 3 Brits say they feel pressure to keep up with the lifestyles of people they know when upgrading their car. 

This is more common among men, as 33% said they had felt pressure to upgrade their car compared to only 28% of women. 

1 in 3 have upgraded their car because they’ve seen people they know with a better car

One-third of drivers have upgraded their cars upon seeing friends, family members and acquaintances with better vehicles, highlighting the strong influence of social comparisons and peer pressure on car-buying decisions.

While family and friends were the primary people Brits sought to impress with their new car, colleagues, neighbours, and even fellow parents at school influenced the choice of car upgrade for many people.

1 in 5 Gen Z feel peer pressure to upgrade car from social media 

The societal pressure to maintain a certain status pushes many Gen Z into purchasing cars beyond their financial means, with social media playing a contributing role. 

In an age where social media often showcases curated lifestyles and possessions, some millennials are feeling compelled to keep up appearances, even if it means stretching their budget beyond their means. 

Unrealistic standards often set by celebrities and influencers may fuel feelings of inadequacy among Gen Z as over 1 in 5 (22%) said they feel peer pressure to upgrade their car because of social media.

2 in 5 Brits would go into debt to get the car they wanted

1 in 5 Brits have garnered over £5,000 worth of debt for a car 

A significant number of Brits are willing to take on debt to get the car they want, with 2 in 5 ready to do so. 

In fact, 1 in 5 have already accumulated over £5,000 in car-related debt, and 1 in 8 UK drivers saying they have racked up over £10,000 in arrears. 

Men are 7% more likely than women to go into debt for a car 

The results of the CarMats.co.uk study showed men were 7% more willing than women to go into debt for a car. Studies have shown that men have a higher risk tolerance which could be one of the main reasons they are more likely to go into debt for a car they want. Other factors could include needing a vehicle for their job or their social status. 

Brits cite rising costs as one of the main reasons they’re going into debt for a car 

With living expenses and car prices on the rise, more Brits are feeling the pinch, especially when it comes to buying a car. Nearly half of Brits admitted the rising cost of cars and a lack of savings was the main reason they were going into debt for a vehicle they wanted. 

This reflects the growing struggle people face in managing their finances amidst increasing costs. 

Top 5 reasons why Brits choose to incur debt

Research from consumer motoring site Honest John reveals that prices for many of Britain’s most popular new cars have surged by over a quarter in recent years. Analysing the UK’s car market following the introduction of the 22-plate, the study uncovered widespread price increases for favoured models from various manufacturers, including Ford, Vauxhall, Fiat, and Nissan. 

For instance, the starting price for the new Vauxhall Astra climbed by 26% compared to costs in 2018. Likewise in 2022, the price stood at £23,805, up from £18,895. Similarly, the entry-level Nissan Qashqai experienced a 25% hike, soaring from £19,595 to £24,555.

It wasn’t just rising vehicle prices that were causing Brits to go into debt for their car, however, the cost of living crisis, ongoing affordability and an improved social status are other factors also leading to this decision. 

Over 1 in 5 Millennials would go into debt to upgrade their car to ‘improve’ their image

Keeping up appearances is something that everyone deals with, no matter their age or income. From minimum wage earners to those in the highest tax bracket, many people feel pressure to meet the expectations of their social circles and present themselves in a certain way. 

Often this includes having the right car on your drive, and 1 in 5 millennials would even go into debt to achieve this social status. 

Dealership Discrimination

Quarter of women bring a friend along when buying a car over fears of being mis-sold

The car dealership experience isn't one-size-fits-all as many Brits said they had not had a pleasant experience buying a new car. Understanding these dynamics can help improve the car buying experience for all consumers.

The response from the survey highlighted that gender can also play a role in that experience, as a quarter of women admitted they opted to bring a friend along when buying a new car to avoid being mis-sold. 

Why do some women bring along a friend, partner or family member when buying a car?

The study revealed that 1 in 4 women bring a friend, partner, or family member along when buying a car because they worry about being mis-sold during the car buying process. Having someone else there can help people feel more at ease during the discussions, helping to handle any sales pressure, spot misleading information, and ensure they're treated fairly by the salesperson. 

2 in 5 Gen Z buying a car feel discriminated against because of their age

The Car Buying Habits study found that 2 in 5 Gen Z  have felt discriminated against when buying a car because of their age. This view may tie into the fact that younger drivers are often considered less experienced, having had less time on the road. 

Others may feel discriminated against by the "boy racer" stereotype, which often unfairly labels young male drivers as reckless and irresponsible.  This age-based bias not only increases their financial burden but also makes it harder for them to afford car ownership. 

1 in 12 Brits feel discriminated against because of their credit score 

During the car buying process, 1 in 12 Brits said their credit history left them feeling unfairly discriminated against. It's not just hard credit checks that can lower your credit score, though; a short credit history can also have a negative impact. 

Building a solid credit history takes time and is influenced by several factors, including your payment history, debt-to-credit ratio, length of credit history, new credit, and the total amount of credit you have. Another study by MyLifeKit found that 34% feel that credit scores aren't a true measure of a person's creditworthiness.

1 in 25 Brits said they felt discriminated against when buying a car because of their race

The Car Buying Habits study also found that 1 in 25 Brits feel discriminated against when buying a car because of their race. It indicates the presence of biases within the car dealership industry, potentially making the car-buying process unfair and distressing for some individuals.

1 in 25 Brits said they felt discriminated against when buying a car because of the area they’re from

Although insurance companies are known to charge higher premiums for ‘higher risk’ postcodes, many Brits report that geographical bias affects their car-buying experience too. One in 25 Brits reported feeling discriminated against when buying a car because of the area they come from. 

Certain areas are perceived as higher risk by insurers and lenders, penalising these residents as they face prejudices that have nothing to do with their personal driving records or financial stability. 

This is where people felt most discriminated against

The study revealed that drivers in both the capital and the North West were particularly prone to feeling discriminated against when purchasing a car, based on their residential area. 

Given that Manchester, London and their surrounding areas have some of the UK's highest population densities, crime rates tend to increase, ultimately impacting all drivers residing in these ‘higher risk’ locations.

Some Brits feel taken advantage of at a dealership

1 in 25 felt pressure to buy a more costly car and 1 in 37 were sold expensive ‘hidden extras’ 

Commission incentives and genuine enthusiasm may be why some drivers feel pressured into purchasing a more expensive car than they wanted at a dealership. The survey revealed that 1 in 25 felt pressure to upgrade beyond their means, while 1 in 37 admitted they were sold costly "hidden extras." These findings show that pressured sales tactics and upselling strategies in the car-buying process emphasise the need for greater transparency and consumer protection measures.

Over 1 in 6 (16%) of Brits have bought a car without test driving 

With the rise in online sales, it may be of no surprise that test drives are something 1 in 6 Brits choose to avoid, admitting they’ve bought a car without taking it for a spin first. 

This is more common among Millennials as nearly 1 in 5 (18%) admitted to purchasing a car without a test drive and residents in or nearest to Cardiff (26%), Brighton (24%) and Manchester (22%) also admitted to doing the same. 

There’s many reasons why people may choose to skip the pre-purchase drive including because the car has been bought online and is being delivered to their address, feeling pressure to act quickly because the car is in high demand. Also, some may feel inclined to skip the test drive if they’re buying a second-hand car from a trusted friend or family member.

Conclusion

The Car Buying Habits study dives deep into how people approach upgrading their vehicles, showing that everyone's experience is different and shaped by various profiling factors including age, gender, race, the area they live and their financial status.

It sheds light on why and how often people choose to upgrade, showing how the increasing costs of cars, the broader challenges of the cost of living crisis and the image perception some Brits are looking to achieve. 

Methodology

Research conducted by CarMats.co.uk team utilising the sources below. Information correct as of Thursday 20th June 2024. 

We surveyed 1,035 UK drivers using Censuswide, to find out about their opinions and experiences of the car buying process. The sample included women, men, transgender, non-binary and gender-fluid people (and an ‘other’ option to specify a different gender not listed). They ranged between 17 and 55+ from across the UK.

Fair use statement 

If you want to share our study, any findings or images from the study, please credit with a link to this page.