As many as eight million vehicles face being sold at some point this year as drivers struggle to keep up with unprecedented costs, according to a new report.
The factors contributing to drivers being forced to consider selling their car include the high fuel price point and insurance premiums which have been climbing in recent years.
Due to the spike in prices, nearly a third (29 per cent) of drivers have cut down on how many times they use their vehicle to save on costs.
The data found that Gen Z and older millennial drivers have been hardest hit, with almost a third (30 per cent) of people aged between 17 and 24 and a quarter (25 per cent) of 35 to 44-year-olds feeling financial pressure to sell their cars.
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Car insurance costs were flagged as one of the main expenses by over half of drivers, followed by fuel (47 per cent) and general maintenance (35 per cent).
As the price of insurance rises, it has forced some drivers to resort to lying on their insurance applications to help bring down prices.
Motor insurance fraud makes up most of the cases, with the Association of British Insurers finding that 43,000 UK drivers are prosecuted each year.
According to a survey, almost three in 10 drivers have reduced their driving while 17 per cent have sold, or plan to sell their car and have cited needing the money as the main motivator.
Notably, Gen Z drivers have been forced to spend the most on cars, with a quarter (21 per cent) spending between £2,400 and £3,000 a year to stay on the road.
However, cost pressures aren’t the only reason Britons are selling their cars, with one in seven drivers saying it was due to environmental reasons.
Other reasons included no longer needing a car due to increased use of public transport (14 per cent), while 12 per cent opted to cycle, and 11 per cent would rather use electric scooters.
The current average price of unleaded petrol is 147.88p, while diesel drivers' are charged 153.58p per litre.
Aidan Rushby, founder and CEO of Carmoola, explained that it's clear that the cost of living crisis is “having a real impact on UK drivers”.
“It’s shocking to see that one in five Brits have thought about selling their car because running costs are just too high,” he said.
He continued, saying that it's a “challenging time” but there are some steps that “everyone” can take to make car ownership more affordable.
“Shopping around for things like insurance and breakdown cover, carpooling or chipping in for fuel costs, and refinancing a car loan to a better rate can all shave significant sums off the annual cost of motoring,” Rushby explained.
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If an insurer finds out that a false claim is bogus, drivers could risk having their policy terminated and jeopardise them getting covered elsewhere.
