11:50 am, August 22, 2024
Millennials are the most likely car owners to use buy now, pay later services to cover car repair, servicing and MOT bills.
That’s according to research of internal data by automotive fintech payment specialist Bumper.
The millennial demographic covers people born between approximately 1980 and 1995.
Bumper identified 43 as the average age of customers using buy now, pay later (BNPL) to spread the costs rather than paying upfront or using credit cards.
The overall average was consistent across franchised dealers but dipped to 38 for independent workshops.
However, older Generation X owners – those born between approximately 1966 and 1980 – are likely to use BNPL for more expensive bills.
The study found that 47 was the average age of buyers using deferred payments for bills costing £2,000-£4,000, 49 for £4,000-£6,000, and over-50s for bills in excess of £6,000.
Bumper, which is based in London and Sheffield and works with more than 5,000 dealerships and garages across the UK, Spain, Germany, Netherlands and Republic of Ireland, forecasts it’ll help car owners to fund over £460m-worth of car repairs this year.
It says it helps more than 600,000 drivers to pay their servicing and repair bills via PayLater, PayNow and PayPad.
The UK and Ireland had the youngest average users in Europe at 43, followed by Spain (45), Germany (46) and the Netherlands (47).
Bumper CEO and co-founder James Jackson said: ‘When it comes to settling workshop bills, budget-conscious millennials have identified the benefits of spreading their outgoings with BNPL, rather than racking up credit card debt.
‘Car owners born in the early 1980s will typically be at a life stage where they have monthly mortgage or rent payments and have a young family, so choosing to spread their motoring costs interest-free over several months makes perfect sense.’
He added: ‘Our research also shows BNPL isn’t restricted to millennials, as older Gen X owners are likely to use it to cover more expensive bills.’
