Buying a car has been seen as a bigger milestone for Gen Zs than buying a house as the drive to get on the property ladder becomes less important than travelling across the UK.
A recent survey found that over a third of drivers would rather buy a new car than purchase property as prioritise for 18-29 year olds shift.
Looking at it demographically, men were found to be more likely (78 per cent) to purchase a new car than women (71 per cent).
A further 54 per cent of respondents agreed that buying a new car can boost their morale with over two thirds (68 per cent) stating there is no better feeling than driving a new car.
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Drivers more likely to buy a new car than home
GETTYMeanwhile, over a quarter (26 per cent) are more likely to purchase this year's “24” identifier number plate which can boost the value of the car.
Erin Baker, editorial director at Auto Trader said: "The feeling of purchasing and getting behind the wheel of a brand new car for the first time can provide a huge boost in terms of satisfaction and motivation for an individual.
“With the ever-growing challenges of getting on the property ladder, it’s clear that the focus and life goals for a number of Brits have changed entirely.
“This has opened the door for many to consider channelling their financial efforts into saving for a brand-new car which features some of the newest tech innovations and accessories along with the latest number plate that will no doubt impress their friends and family both in person and on social!"
New cars entering the market has spike in recent months with there now being over 40million vehicles on UK roads.
Out of the total vehicles, almost half a million were new battery electric and hybrid vehicles which were up by 47.3 per cent compared with 2022.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “After two challenging years of constrained supply, more people and businesses across the UK are now getting back behind the wheel – and increasingly, opting for greener options.
“A stronger and stable economy, coupled with reduced living costs, would boost consumer and business confidence, while compelling fiscal incentives would ensure that these purchases are emissions free. Not only would this accelerate the transition – fundamental to the UK’s net zero ambitions – but it would also stimulate the economy and enhance the wider environment in which we all live.”
Despite more drivers wanting a new car over owning a home, the costs for motorist still remain high with car insurance premiums and fuel key contributors to prices.
Premiums rose by almost half in the last year with data of more than six million quotes finding that policies went up £284 in the period.
Louise Thomas, motoring expert at Confused.com, said: “For the first time in a while car insurance prices have stalled slightly for most drivers, and this may come as a relief.
“However, prices are still incredibly high and so people can expect to see their price increase compared to the previous year.”
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Drivers aged between 18-29 year olds and Londoners are the two groups hit hardest by rising house prices
PADrivers aged between 18-29 year olds and Londoners are the two groups hit hardest by rising house prices, with over half of respondents from both groups wanting a new car instead of a home.