Brits to spend £108bn on new cars

Britons are expected to spend more than £108bn on a new or second hand car this year.

A study by American Express found that 19% of adults will spend an average of £11,094 buying a brand new or second hand car during 2017.

On top of that, drivers will also have to fork out an average of £1,492 per car this year on running costs.

London tops the table for splashing out the most on a new or second hand motor at £14,557 each, followed by the East Midlands (£13,831) and Scotland (£13,191). Welsh and Northern Irish motorists plan to keep their spending at four figures, budgeting £9,282 and £8,842 respectively.

Meanwhile, running costs remain front and centre of consumers’ minds when it comes to deciding whether to purchase a new or second hand car. Almost seven in 10 (68%) of those surveyed cite this as the main consideration ahead of efficiency (53%) and comfort (46%).

The associated annual costs of running a car include fuel (£461), insurance (£311), maintenance (£222), tyres (£142), roadside assistance (£80), additional parking fees (£64), washing/valeting (£63), parking permits (£55), windscreen repairs (£49), and accessories (£45).

Jenny Cheung, director at American Express said, ‘For many, owning a car means freedom. While this freedom can come at a cost, there are some savvy ways to manage the finances linked to buying and running a car. By putting car related expenses on a credit or charge card that offers rewards or cashback, you can get something back on your spending, which means you can treat yourself later in the year.’