Just as many Brits are finding it difficult to get on the housing ladder, it seems getting on to the car ladder is becoming out of reach as well, particularly for younger generations.
In fact, nearly a fifth of Brits (18%) without a car believe they’ll never be able to afford one of their own, according to research from temporary car insurance provider Tempcover.
Car ownership is lowest among Gen Z, with a third (32%) currently not owning one. However, the research also reveals a significant portion of other generations are without a car too – 24% of Millennials and 22% of both Gen X and Baby Boomers – indicating a growing challenge across all age groups as rising bills and the overall cost of living make car ownership increasingly difficult.
The data revealed a third of those in Nottingham without a car feel their ability to plan travel is limited, causing them to miss events due to much longer travel times. Worryingly, 67% of those in Nottingham need a car for work but 11% don’t believe they will ever be able to afford the cost of buying a car, with the key concerns being the running costs (33%) and, the initial cost of purchasing a car (22%). However, another 22% state they have no need for one due to good public transport in the city.
Why is the ‘keyless generation’ emerging?
This signals the rise of the ‘keyless generation’ (also known as NOCKers - those ‘Never Owning Car Keys’).
While nearly two thirds of Gen Z respondents (65%) believe car ownership is essential for modern life, many feel they simply can’t afford one. Two fifths of Gen Z (42%) are put off by the up-front cost, and more than a quarter (26%) cite the running costs - from petrol to car tax - as reasons for not having a car. What was once seen as a rite of passage into adulthood is now becoming out of reach for this younger generation.
Among all adults who don’t own a car, one in five (22%) don’t think they’d ever be able to afford one on their own but a third (31%) would only consider buying one if prices dropped. For 36%, nothing would persuade them to own a car, even if prices dropped. In addition, one in ten (12%) NOCKers who don’t own a car prefer to take more environmentally friendly methods of transport, such as cycling, to reduce emissions.
Real life impact of being part of the ‘keyless generation’
Life without car ownership comes with bumps in the road. Over a third (36%) of those keyless complain that using public transport means enduring longer travel times. Nearly half (49%) say their travel plans are limited as they’re bound by lifts from others, and a third (31%) find shopping a challenge, resulting in more home deliveries or smaller, frequent shops.
But going without a car also has its upsides with respondents saying they don’t have to worry about motoring specific stressors, such as parking (57%), traffic (49%), or road rage (41%). What’s more, over one in ten (13%) have easy access to borrow a car when needed, and many NOCKers report lowering their carbon footprint and a level of financial freedom from not being tied to annual insurance policies (46%).
Keyless, but not stranded
While 30% of non-car owners rely on family or friends, others are getting creative with 5% now using car-sharing services, and another 5% taking out temporary insurance when they need to drive - swapping full time ownership for the pay-as-you-go freedom.
Claire Wills-McKissick, a temporary car insurance expert at Tempcover said, “Attitudes toward driving and travel are shifting, with financial pressures affecting people of all ages. While some find car ownership increasingly out of reach, others are consciously choosing to opt out.
Fortunately, temporary car insurance offers a flexible alternative, letting people borrow a car and enjoy the freedom of drivingon a need-to-go basis, without the long-term costs or commitments of car ownership.”