Older drivers could be missing out on substantial savings when arranging car finance, according to recent analysis by Compare the Market. The study highlights a potential “boomer blind spot,” where motorists aged 55 and over are less likely to compare finance options before committing to a deal.
The research found that 83 per cent of road users aged 55 and above were aware that car finance options exist beyond dealership offerings, compared to 77 per cent of all motorists. Despite this awareness, 29 per cent of the older group did not seek any alternative finance quotations prior to signing their agreements. This contrasts with just six per cent among drivers aged 25 to 34.
Additionally, only a third of drivers aged 55 and over considered two or more finance quotations, whereas nearly 70 per cent of motorists between 25 and 34 did so.
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Charlie Evans, a money expert at Compare the Market, emphasised the importance of thorough research when purchasing a car. He described it as one of the largest financial commitments for many households. Evans stated: “Our research shows that while older drivers understand that finance options exist beyond the dealership, they are far less likely to compare these before agreeing to terms. It’s a bit of a boomer blind spot.”
He added: “Accepting the first deal from your car dealer might seem convenient, but without exploring alternatives, it’s difficult to ensure you’re getting good value.”
Evans also suggested that those already with car finance consider refinancing, as this could potentially save them an average of £843. However, he cautioned: “Whatever path you choose, it’s crucial not to borrow more than you can realistically afford to repay.”
Abigail Foster, a personal finance expert at Compare the Market, expressed encouragement that younger motorists are more diligent in shopping around. She explained: “Younger drivers are often new to credit and finance, so it’s worthwhile to understand the full cost of a finance agreement - not just the monthly payment. Balloon payments at the end of agreements can sometimes come as a surprise and result in unexpected expenses.”
Foster continued: “Comparing interest rates, total repayment amounts, and any associated fees before signing can help avoid overpaying and promote good financial habits that benefit drivers long after their first car purchase.”
She concluded by noting that comparing different financing options has become easier, with many deals now accessible online for easy comparison ahead of making a decision.