British drivers are spending approximately £200 billion more annually on cars than they did 20 years ago. That means the current total average annual spend on buying and owning new cars in this country stands at £523 billion.
This is according to research from Admiral Car Insurance, which has worked out that the average household nowadays spends £27,064 per car over the duration of their ownership. That’s nearly double the figure compared to 1995, when the average spend was £13,670.
Admiral Car Insurance believes that the increase in spend is partly down to an increase in households with two or more cars, particularly when more children old enough to drive are living at home longer. The insurance provider discovered an average nationwide increase from one car per household to 1.14.
A breakdown of average spend in different regions of the Britain has also been made, and it is the North East which has seen the biggest jump in spend. The average spend on cars here has increased by £16,303 thanks to an increase in average cars-per-household from 0.7 to 1.08.
The UK city that has seen the lowest increase in car spending over the last 20 years is London. Average spending on cars in the capital city has increased by just £7,011 - from £10,860 in 1995 to £17,871 this year.
Admiral’s research also found that Leicester contains the most multi-car household postcodes, with LE2 and LE3 coming first and fifth on the list. Also in the top five is the postcode CM3 in Chelmsford, BS16 in Bristol and SL6 in Slough.
