UK, Wednesday 25^th November 2015: East Anglians are choosing cash over credit when it comes to their car-buying habits, with more than three quarters (77%) handing over cash at the forecourt, compared to the national average of 64%. The findings from Experian also show that people from East Anglia favour newer cars, with 15% of people driving a car less than a year old, nearly double the UK average of 8%.

While the national statistics show an increasingly number choosing to lease their cars, East Anglians are bucking the trend, with just 8% leasing or part exchanging their car compared to a national average of 1 in 5.

The research shows a national generation gap when it comes to car-buying habits, with older people more likely to use cash or savings – up to 70% amongst those aged 61 and over. Meanwhile younger drivers appear to be taking advantage of affordable credit deals to skip a step, and move straight up to newer, more desirable models.

Astonishingly, almost two thirds (61%) of 18-24 year olds in the UK say they drive cars worth between £11,001 and £20,000, meaning those opting for credit deals are taking on significant financial commitments to fund their more expensive tastes.  

James Jones, head of consumer affairs at Experian, commented: “Our research shows East Anglians overwhelmingly choose cash over credit when it comes to their car-buying habits, compared to the national average. However, with many younger drivers now buying high-value newer cars, often with less experience of managing credit, it’s vital those who do opt for credit understand the importance of keeping up their agreed monthly repayments after they’ve left the garage. 

“With credit currently being offered at some of the cheapest rates seen for decades, it is important that people looking to borrow make sure their credit rating is as strong as possible. A strong credit rating will help them get access to the best deals they can afford, which could save them money in the long-run. We know buying a car can be confusing so we’ve launched a step-by-step guide available at www.experian.co.uk/improve. We hope this new guide will help people navigate the car-buying process and understand the best option that suits their circumstances and their credit history.”

 

1. Do your research:Use calculators and comparison websites to understand the different options available, find out where the best deals are and what type of arrangement will suit your circumstances. If you are purchasing a used car, it is worth considering getting a provenance check. It’s affordable and can tell you whether your car has been stolen, written off, or has outstanding finance on it. If you are buying a new car, it is equally important to shop around with a realistic budget to find the best model you can afford.  
2. Check your credit report:As soon as you make the decision to buy, check your credit report with all three credit reference agencies. Ensure everything is accurate and up to date and reflects your current circumstances. If you spot anything you believe to be inaccurate, contact the relevant lender and ask them to investigate the entry. Experian has just launched a car finance guide with information on the most common credit options, including the type of credit history likely to be needed for each.
3. Room for improvement:If your credit report has areas for improvement, make a plan to get it into shape well before making your loan application. There are a number of steps you can take, including: ensuring you’re registered on the Electoral Roll; paying down outstanding balances to less than 50% of your limit; paying off more than the minimum repayments on your accounts each month and making sure never to miss a repayment. Improving your credit rating will put you in a strong position to get the best deals you can afford.
4. Don’t overlook the details:Buying a car on credit is an investment that costs more than just a deposit and monthly repayments. Before you sign on the dotted line, make sure you’ve considered the additional costs and that you can afford to repay everything you’ll owe when you make the purchase. Additional costs might include: Insurance, Fuel, Maintenance and road tax. Meeting your monthly repayments on time should help keep you on the road to a strong credit rating, too.

5. Don’t fall at the last hurdle:Right before you make your application, take time to do some last-minute checks. Check your credit report again to make sure nothing has changed and everything is accurate right before you apply. Check the exact way your address and other personal details appear on your credit report. Small inaccuracies could see your application turned down, so don’t overlook the details.

Research was carried out online by Canadean in October 2015 among a sample of 1,000 UK adults.