WhatCar has revealed that 37% of respondents said they now changed their car more frequently than they did a decade ago, with Personal Contact Purchase (PCP) contracts seen as the primary driver of the change.

The data is drawn from a recent survey of motorists from the Haymarket Motoring Panel which consists of 4,000 respondents drawn from readers of What Car?, Autocar and Pistonheads. WhatCar has warned that the survey’s findings could mean that consumers are likely to have savings deficits at the end of PCP terms.

Of the 4000 respondents, 22% said that a generous finance offer would be the primary motivator in the decision to change. Data from the Money Advice Survey, March 2016 shows that  four in 10 adults having less than £500 in savings in the bank, implying many motorists will be unable to finance a new contract with savings when their current PCP expires.

What Car? Editor Steve Huntingford commented: “The range of finance options available to car buyers is now more generous than ever and can often be an effective way to spread the cost of paying for a safer, better-equipped car. However, these finance options shouldn’t be seen as ‘free money’ and buyers need to ensure they have a financial cushion to cover the costs at the end of their initial payment term in order to stay on the road.

“The final payment to secure a vehicle on a PCP term is typically several thousand pounds, and the deposit on the next car can also require a substantial cash injection.

“Damage and excess mileage charges on a PCP-financed vehicle could also be an unpleasant surprise if not accounted for, so it is important to read the small print before making the commitment.”