Men change their cars more frequently and are more likely to buy a brand-new car, according to new Aviva research
1 in 3 motorists say brand new cars are “a waste of money”
- One-third of Irish drivers change cars every 3-5 years
- A quarter don’t change their car unless “absolutely necessary”
12 July 2024, Dublin: Motorists in Ireland are most likely to upgrade their cars every 3 to 5 years according to a new consumer survey from Aviva Insurance Ireland DAC (Aviva) that found that just over one-third (34%) of respondents aim to change their car within this time frame. However, just over a quarter (26%) of the 879 drivers surveyed throughout the country said they wouldn’t change their car unless “absolutely necessary”, with female motorists significantly more likely to hold this view compared to their male counterparts (31% vs. 21%).
The research from Aviva shed some light on how often people change their cars, the factors influencing this decision, and people’s attitudes towards buying brand-new vehicles. What emerged from the findings was that:
- Men tend to change their cars more frequently, with more than one in ten men (11%) changing every two years or less, compared to one in twenty women (5%). Almost half of the men surveyed (49%) change their car every five years or less, in contrast to 35% of women.
- One in ten (11%) adults aged 25 to 34 claimed that they change their car every year compared to just 2% of those aged 35 – 44.
- Over half (51%) of motorists either do or would buy a brand-new car if they could afford it, and 17% said the only reason they don’t is due to affordability.
- Significantly more men than women either always buy new cars or plan to do so next time around (32% vs. 21%).
Julie Frazer, Underwriting and Product Lead at Aviva commented on the findings:
“We can see from the survey results that affordability, gender and life stage all appear to influence decisions around car purchases. For many, especially women and older cohorts, the decision to hold onto a vehicle until absolutely necessary reflects a pragmatic approach to managing expenses and getting the most out of what they’ve invested before opting to change it.
“While it’s clear that men are more predisposed to changing their car for a newer model more often, younger adults too, particularly those aged 25 to 34, appear to follow this purchasing pattern with a notable 1 in 10 saying they aim to change their car on an annual basis. It’s possible that this age group may have more disposable income and fewer long-term financial commitments. Those aged 35 – 44 were far less likely to change their car each year, as they are more likely to have mortgage repayments or children’s expenses to consider.”
The Aviva survey also pointed towards “affordability” as a primary barrier to purchasing a new car, with 42% of respondents citing it as the only thing stopping them from doing so. However, almost one-third (32%) believe that new cars are a waste of money because of high depreciation.
Julie Frazer continued: “It's evident that while the majority of survey respondents would like to buy brand-new vehicles, affordability remains a significant hurdle. However, the perception of new cars as a poor investment due to depreciation is shared by almost a third of those surveyed. New cars will always lose some of their value the minute they are driven off the forecourt, and this depreciation generally continues over the following years. This can make buying new less attractive for those who are mindful of long-term financial planning. People are becoming more aware of the fact that the higher initial cost of a new car does not always equate to a proportional return on investment. Some people prefer to purchase used cars that have already undergone the steepest part of their depreciation curve, providing better value for their money.”
The Aviva survey found that people aged 55 and older are the most likely to always buy a new car, with 29% in this age group expressing this preference, compared to just 9% of those aged 45-54.
“The fact that drivers over the age of 55 are more likely than any other group to buy new cars suggests a more financially stable cohort and might also reflect a desire for reliability. New cars typically come with warranties and guarantees, providing reassurance against unexpected mechanical issues which can be particularly important for those who rely on their vehicle to get around. Purchasing a new car means less time and effort spent on maintenance and repairs when compared to buying used vehicles, which may require more frequent servicing or repairs due to wear and tear,” concluded Julie Frazer.