New car myths leave many out of pocket
New-car buyers are paying $20,000 more for a vehicle than used-car buyers, and while people aged over 65 prefer to leave a showroom in new wheels by a factor of almost two to one, Generation Z is saving its cash, with most opting for secondhand.
The average spend on new cars is $33,650, compared with $14,184 for used cars, according to a survey of more than 1000 people by ME Bank.
And while at least two in three Generation Z respondents (aged 18 to 24) bought secondhand, many said they “would feel embarrassed driving a used car”.
Almost two thirds of respondents failed to identify depreciation as the biggest cost of owning a new car in the first three years, including 86 per cent of Generation Z.
Matthew Read, a spokesman for ME Bank, said a factor that may explain the popularity of new cars is that many owners mistakenly think they cost less overall to run and maintain.