According to research by AA Cars, Millions of first-time drivers rely on the Bank of Mum and Dad to get them on the road each year.

A survey of 11,000 motorists found that more than one in four (26%) young drivers have been bought a car by their parents[1], while over a third (34%) have received some financial support from the Bank of Mum and Dad to purchase one[2].

Nearly half (49%) of those who had a car bought for them said it was a reward for passing their driving test, while 23% received it as a birthday present and 4% as a Christmas gift. Other occasions for receiving a car included starting university or celebrating exam success.

However, most young drivers do not benefit from such generosity. Three-quarters (74%) of respondents in this age group reported they had never been gifted a car, while 66% had not received any financial assistance from their parents.

The rising cost of car ownership has made it even more difficult for young drivers without financial support to get on the road. The cost of insuring a car, in particular, remains a significant financial burden for many new drivers.

However, separate AA Cars research shows that the used car market is becoming more affordable. The average price of the 20 most popular used cars on its platform dropped 6% in the third quarter of 2024 compared to the same period last year.

There are even bigger savings for smaller hatchbacks such as The Fiat 500 which registered an impressive 20.4% annual price drop, followed closely by the Ford Fiesta (19.8%), Ford Focus (15.2%), and Volkswagen Golf (12%)[2].

These vehicles, often chosen by young drivers due to their affordability and practicality, are now even more budget-friendly. In addition, models like the Fiesta are also traditionally cheaper to insure, offering an extra advantage for new drivers looking to keep costs down.

James Hosking, Director of AA Cars, says, “Getting on the road has become a significant financial hurdle for young drivers today.

“With the cost of living at record highs and the average price of a new car well above what previous generations paid, many young drivers face an uphill struggle to afford their first car without family support.

“Not everyone has the privilege of being gifted a car, but our research shows that parents often try to lend a helping hand — even if it’s just contributing to a portion of the price.

“To help reduce costs, opting for a used vehicle can be a practical solution, offering reliability without stretching budgets too far.

“For those concerned about unexpected expenses that can arise with older or pre-owned cars, there are ways to mitigate the risks. Having the car independently inspected and reviewing its history can provide peace of mind that the vehicle is safe and free from hidden issues.”

References:

[1] Yonder received 11,306 responses from AA members to its online poll between November 12th and November 19th 2024. Yonder is a member of the British Polling Council and abides by its rules.

[2] AA Cars compared the price of its platform’s top 20 most popular cars in Q3 2024 with Q2 2024 and Q3 2023.