Men want head-turners, women want planet-savers

Our desire for head-turning motors could lead to a mid-life money crisis

New research by leading financial website Fool.co.uk shows that underestimating the effects of depreciation could scupper our ambitions of owning a flash set of wheels[1].

Two out of five men want cars that turn heads.

Two in five women want planet-savers.

Motorists reckon cars only depreciate 10% a year.

The average consumer estimates cars depreciate at 10% a year.

The typical motorist spent £11,250 on a car seven years ago, and believes that the motor is now worth £6,193.

But dreams of the eco-wagon and status car may be a long way off.

Most cars depreciate at 15% a year[2], so a motorist is only left with a measly £3,600 of that £11,250 spent seven years ago to put towards the dream car.

The findings also reveal that men hanker after something more than the basics to get them from A to B, with two in five (39%) dreaming of a car that provokes envious looks.

Women also have visions of themselves in statement cars, with two in five (40%) showing their preference for something with excellent green credentials.

Being young plays a part in craving for a prestige car, with half (46%) of 18 to 25-year-old men wishing for a flash set of wheels.

Girl racers also feel the same, with six out of ten (60%) of the same age looking for some mobile glamour.

However, while women lose the urge to impress much earlier, men don't until the age of 49.

But it seems that marketing men have not reached a third (31%) of the population, who claim that getting to where they're going is all that matters.

Also, over two thirds of car purchases made by motorists were second-hand motors.

David Kuo, Head of Personal Finance, at Fool.co.uk, says: "Jokes are often made about flashy cars representing mid-life crises, but it's no laughing matter when one in six people say upcoming car purchases will be made on credit.

"If you have to buy a car then paying for it either partly or entirely from savings will greatly reduce your motoring costs.

Every £1,000 that you use from savings to buy your car will slash you total car-finance bill by £275 over five years[3].

"Using your savings to buy a car is a healthy way to overcome car-sickness, which is the feeling you get when your monthly car-loan instalments are due." 1.

A survey of 2,018 Fool.co.uk readers conducted between 20 and 28 February 2008.

2.

Based on The AA 'Running Cost Tables 2008' for new cars with a purchase price of £1,000 to £30,000, and annual mileage of 10,000 miles.

3.

Calculations based on a 5-year unsecured loan at 10% interest a year.

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