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A recent study by personalised number plate provider Regtransfers has revealed a significant trend in British attitudes towards funding young adults’ driving education. Surveying 1,000 adults across the UK, the study revealed an overwhelming 87% believe parents should contribute to the costs associated with their children learning to drive.
In fact, one-third of respondents advocated for a balanced financial responsibility, suggesting a fifty-fifty split between parents and their 17-year-old offspring for driving lessons, while a quarter felt it should be the same when it came to purchasing their first vehicle.
Learning to Drive
With the cost of driving lessons ranging from £25 to £50 per hour and a recommended 45 hours to pass the driving test, the total expense of learning to drive can escalate to approximately £1,125 to £2,250. For many young adults, this represents a significant financial challenge. The study reflects this, indicating that half of the respondents received some form of parental assistance in meeting these costs.
A generational comparison within the study reveals a stark contrast in financial independence over time. Among respondents who have passed their driving test, 60% of those aged 65 and above funded their lessons independently, a figure that drops to a mere 10% among the 18-25 age group.
The First Car: A Major Financial Milestone
Purchasing a first car is another key financial investment for new drivers. The study observed a similar generational decline in financial independence, with only 20% of young adults aged 18-25 managing to buy their first car without parental support, compared to 64% of adults over 65.
Inflation and the Rising Cost of Driving
It’s worth considering the evolution of driving costs. As highlighted by online vehicle marketplace Parkers, in the period between 1980 and 1995, driving lessons were priced between £5 and £15. Adjusting for inflation, the cost of popular models like the Ford Cortina Mk3 from 1972 equates to approximately £13,520 to £16,988 in today’s terms.
In comparison, a Ford Kuga is priced significantly higher, ranging from £27,985 to £39,305. However, when juxtaposed with the increase in average salaries, the proportional expense allocated to purchasing a new car remains relatively consistent.
The Escalating Burden of Car Insurance
One notable exception to this trend is the cost of car insurance. Recent news reports indicate that the average premium now stands at £995, up 52% from the previous year, at an increase of £366. Young drivers have been disproportionately affected, as their premiums have increased to £2,002 in the last 12 months by £655. The average cost of an insurance now stands at £2,877, with new drivers under the age of 17 experiencing annual rises of 98%, or £1,423.
Elliott Allen, an Independent Financial Adviser at Advanta Wealth, addresses the broader UK financial landscape. He acknowledges the post-Covid economic environment, marked by rising inflation and mortgage rates, as exacerbating the financial pressures on families.
“Things are tough at the moment, and the cost of independence has risen significantly over generations, meaning it’s harder to meet the many financial responsibilities we all face. The costs involved in driving lessons, buying a first car, university fees, buying property and so on have all increased at rates that exceed wage increases.
Additionally, the focus of young adults has developed over time. In the 1980s, approximately 14% of the population went to university, while many sought their first jobs. In 2023, this figure was roughly 35%, excluding any further studies at specialist colleges. This means around 21% extra 18-21 year olds are going to university now. Ultimately, though focusing on higher education is undeniably beneficial for many in the long run, financial independence becomes more difficult during these years.”
Should Parents Help?
Allen continues to offer his thoughts on how parents – and their children can alleviate some of the financial burden of learning to drive:
“It is entirely individual whether parents would like to get involved in paying for their child’s driving lessons or first cars. Everyone is going to have different opinions, circumstances and values when it comes to money. For those parents who do want to help their children, the best and most simple advice is to start saving from an early age.
There are products on the market, such as a Junior ISA, which parents can contribute towards. Once your child turns 18, they will have access to the funds, and if you’ve been contributing little and often to this fund, you will have generated a good financial platform for them. People often under-estimate the value of time, and starting as early as possible gives the greatest impact of compound interest for any savers accounts available.”
Commenting on the study’s overall findings, Regtransfers CEO Mark Trimbee states: “Our study suggests that Brits feel a strong sense of “parental duty” to support their children in taking steps toward learning to drive, and the evidence shows it’s become progressively more common for them to alleviate at least some of the financial pressures involved. Still, the level of commitment involved in saving for such an expense certainly serves as a strong and valuable life lesson for young adults – one of patience and financial responsibility.
“Ultimately, how a family chooses to support one another is down to individual values and circumstances. Not everyone is going to show support in the same way, but what can be said, with certainty, is that you never forget passing your test, buying your first car and making it your own!”
