NEARLY three-quarters of car owners aged over 55 bought their current car outright without using finance, according to a survey.
The survey of 2000 UK drivers found the 74 per cent of older buyers compared with 54 per cent of 34 to 54-year-olds and 33 per cent of under 34s who splashed the cash.
On average, 62 per cent of cars were bought outright via cash or debit card, eight per cent using personal contract purchase (PCP), seven per cent on hire purchase, five per cent loan from a bank, four per cent on lease and four per cent privately arranged finance.
A further three per cent had finance but were not sure what type, three per cent paid by credit card, three per cent were gifted the car and one per cent had a loan from friends or family.
The survey, commissioned by InsuretheGap, which provides guaranteed asset protection) car insurance, found that 14 per cent of under-34s use PCP, compared with just seven per cent of over-55s and nine per cent of those aged 35 to 54.
Motorists in south-west England are most likely to buy a car outright (78 per cent), while in Scotland the figure is just 59 per cent, although Londoners are least inclined 44 per cent.
InsuretheGap.com boss Ben Wooltorton said: “However people buy their car, buying a car is one of the biggest purchases most people make, and drivers should consider how to protect their investment.
“If a car is written off or stolen, insurance companies will only pay the value of it at the time of the incident, not the amount originally paid for it. Our policies can protect drivers from this.”
