Driving can provide a tremendous amount of freedom and independence for teenagers when they are old enough, but it can be challenging for youngsters to afford motoring when you factor in the cost of a car and running costs (along with the fact that many do not have a job or earn little). Unsurprisingly, this means that often it is the parents that end up paying but, as such a life-changing ability, many are happy to do so.
Parents Helping With Various Costs
A poll conducted by Parkers revealed that 1 in 6 parents helped their children (16 to 21-year-olds) to pay for their first car, contributing an average of 45% and spending an average of £3,410 on their child’s first car – 16% paid the full amount for the vehicle. 44% of respondents also helped with the cost of insurance, which of course can be a major cost for younger drivers who are seen as a large risk by insurers. A quarter paid for road tax while a fifth contributed towards the fuel costs.
Covering the Costs
It is clear that there are many costs associated with driving, not to mention the fact that lessons can be expensive for teens too – one-third of parents paid for every lesson. Consequently, it was found that UK parents were shelling out £2 billion a year keeping their kids on the road which can be at a major cost for many households. Not every parent will have this kind of money readily available, which is why many turn to equity release as a way to free up money to put towards their child’s first car and/or various other motoring costs. 55-64-year-olds averaged a gift amount of £10,000 through equity release when it was used for a new car, which would certainly help a young person to get started with driving.
Happy to Help
Despite the costs, many parents will be happy to help because driving can be such a valuable life skill and provide a great sense of independence (it also means that parents do not have to be a taxi driver for them!). Additionally, parents will always want their children to be safe so they may feel obliged to involve themselves to make sure that they are getting a good car and the right insurance policy.
Learning to drive as a teenager is a great life skill, yet the cost of learning to drive, buying a new car and the various running costs can be out of reach for a high percentage. Unsurprisingly, it is the parents that end up covering a large amount of these costs and parents may need to consider how they could go about finding this sort of money as well as help their child to find the right first car.
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